LEGAL AND INSTITUTIONAL FRAMEWORK FOR REGULATION OF FINANCIAL TECHNOLOGY (FINTECH) IN NIGERIA
Keywords:
Legality, Fintech, Palm CreditAbstract
The rapid evolution of financial technology (Fintech) has significantly disrupted traditional banking systems, offering innovative solutions that enhance financial inclusion and accessibility. However, this transformation has also raised critical legal and regulatory challenges. The aim of this paper is to examine the legal framework governing Fintechs in Nigeria using Palm Credit as a case study. It also examines the Institutional framework for the regulation of Fintech in Nigeria. The doctrinal approach shall be employed. The paper concludes that the litany of legal issues and potential litigation surrounding Palm credit's predatory practices, including forcing unwanted loans on unsuspecting individuals, ensnaring them in debt traps with exorbitant interest rates, and resorting to defamation, harassment, and egregious privacy violations, have not only breached consumer trust but also violated Nigerian laws and regulations, such as the NITDA Act of 2007 and data protection guidelines
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