Assessment of Digital Financial Services Regulation and Consumer Protection in Nigeria

The rapid expansion of digital financial services in Nigeria has created a complex regulatory environment that must balance innovation promotion with adequate consumer protection. This study assesses the adequacy of the regulatory framework for digital financial services consumer protection in Nigeria, with a focus on the Central Bank of Nigeria Consumer Protection Framework 2021 and the Securities and Exchange Commission's crowdfunding regulation. A professional regulatory assessment methodology was employed, combining documentary analysis of regulatory instruments with structured interviews from 40 compliance officers, consumer protection advocates, and digital financial service operators in Lagos and Abuja. Consumer protection adequacy was measured by dispute resolution efficiency, mandatory disclosure compliance, data privacy protection, and recourse mechanism accessibility. Thematic analysis and compliance benchmarking against the G20/OECD High-Level Principles on Financial Consumer Protection were applied. Results revealed that dispute resolution timeliness was inadequate, with average resolution periods of 21 business days, exceeding the Central Bank of Nigeria's mandated 14-day resolution standard in 63% of sampled cases. Mandatory product disclosure rates were at 71%, with mobile credit products showing the lowest disclosure compliance. Data privacy protection frameworks were fragmented, with inconsistent application between bank-led and non-bank digital financial service providers. The study recommends a unified digital financial consumer protection authority to consolidate oversight across all digital service providers in the Nigerian financial system.

Keywords: digital financial services, consumer protection, Central Bank of Nigeria, regulatory framework, dispute resolution