As the Nigerian startup scene grows with more companies coming on board, there has been increased emphasis on the need for thorough compliance with regulatory requirements before going live. And this was one of the focuses at Prembly’s event which centered around the future of financial regulations in Nigeria.
The event, which was held in Lagos and hosted by the CEO of Prembly, Lanre Ogungbe, featured significant industry professionals, regulators, and representatives from financial institutions. They gathered to discuss the constantly changing regulatory frameworks and the difficulties encountered in ensuring compliance is maintained. The discussion also centred on the necessity for innovative approaches to regulation and cybersecurity while highlighting the significance of tailoring policies to suit the specific needs of the Nigerian market.
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Discussants at the event included Olufemi Shobanjo and Kolade Adebayo from NGX, Ayo Adesina from Polaris Bank, and Anthony Aggreh from Capitalfield Financial Management Limited. Adenike Oyetunde-Lawal moderated the event.
The main goal of the event was to promote transparency and open communication between regulators and the regulated. It aimed to encourage a better understanding of why regulations are put in place and how they affect the financial services sector.
A key takeaway from the event came from Olufemi Shobanjo, the Regulation Head of the Nigerian Stock Exchange (NGX) who noted, “Innovation has to go ahead of regulation.” Regulations should be flexible and adaptable, responding to the ever-changing market conditions and feedback from the industry. This highlights the significance of coordination and collaboration between regulators and financial institutions. Shobanjo explained that in this fast-changing financial landscape, it is crucial for regulators to actively listen to the concerns of the regulated and create a business-friendly environment.
During the discussion, there was also a focus on the increasing significance of cybersecurity due to the advancements in technology. Kolade Adebayo, the Compliance Manager at Nigerian Exchange Group (NGX Group) noted that it was necessary to invest heavily in cybersecurity. According to statistics, a concerning 90% of businesses in Africa are vulnerable to cyberattacks. In light of this, companies should prioritize evaluating their vulnerabilities by employing ethical hacking techniques. Moreover, implementing robust data encryption measures can help identify system gaps and provide valuable insights to safeguard against potential cyber threats.
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Ayo Adesina, the Head of KYC and Due Diligence at Polaris Bank, emphasized the importance of policies that prioritize substantive engagement and create space for feedback. He highlighted the utmost importance of regulators actively engaging with regulated entities to ensure compliance, which is crucial for digital safety, smooth business operations, and a global outlook.
The event also dwelt heavily on startups and regulatory compliance concerning data protection. In Nigeria, there are institutions that promote good compliance practices. However, due to the potential reputational damages they may face, many companies hesitate to disclose breaches. And as a solution, it has become crucial to conduct vulnerability assessments at the backend to ensure data security.
Launch of Compliance Tracker
The event also marked the launch of Compliance Tracker, a revolutionary tool that provides users with access to regulatory reports and summaries to ensure global compliance across regulatory bodies.
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Lanre Ogungbe stated that the tracker which has already been successfully introduced in Nigeria features reports from notable regulatory bodies like NGX, CBN, and EFCC. He highlighted that the technology is poised to expand to Kenya and other emerging markets in the upcoming weeks.
