2026 preview: Industry regulations that fintechs should watch out for this year

If 2025 was the year of regulatory announcements, 2026 is shaping up to be the year fintech entities actually have to comply. And judging by the regulations about to take effect, the industry is in for a significant shake-up.

“From the regulatory angle, 2025 was a year of changes. We saw multiple regulations that will be enforced this year,” says Oladipupo Ige, a lawyer.

Four major regulatory changes are set to hit the sector simultaneously, and legal experts say the combined impact could reshape how digital financial services operate across the board.

1. Open Banking

The Open Banking Framework tops the list of concerns. Despite lingering questions about API security and cybersecurity vulnerabilities, the framework will be in full force this year. For payment service providers, loan companies, and cross-border operators, the appeal is obvious.

“Multiple fintechs will key into the idea in 2026 since it allows for the provision of financial services without having to go through rigorous compliance measures aside from signing partnerships with the API providers,” Ige explains. Expect a rush into this space.

2. Agent Banking

Then there are the new Agent Banking regulations, which fundamentally alter how POS agents work. Gone are the days of agents juggling multiple principals.

“An agent will be tethered to only one principal,” Ige notes. Mobility restrictions paired with geo-tagging mean constant surveillance is the new normal. “This does not affect the viability of the project, but it does disrupt the current system in operation.”

3. Consumer Lending Guidelines

Digital lenders should brace themselves, too. The Federal Competition and Consumer Protection Commission (FCCPC) is finally getting serious about enforcing its Digital, Electronic, Online, Or Non Traditional Consumer Lending Guidelines.

The regulation mandates registration of all loan companies and covers everything from consumer protection to data handling to operational standards. “This will definitely impact the fintechs involved in digital lending in 2026,” says Ige.

Olayemi Cardoso, CBN governor

4. Data Protection

Add to this the Nigeria Data Protection Commission ramping up enforcement of its General Application and Implementation Directive. The commission started flexing its muscles in September 2025, releasing a list of over 1,300 defaulting companies.

This year, the sanctions will likely increase.

"Being that the majority of fintech operations involve a massive amount of data to execute due to their online operations, data protection will be a huge consideration this year," Ige adds.

Read also: How CBN’s Open Banking system will impact Nigerian fintechs: All you need to know

Will fintech companies be ready?

The good news is that fintech firms are generally aware when regulations change.

“Fintechs are usually conversant with regulatory changes. In most instances, due to the way the sector is regulated, they naturally comply with new laws, so I would say there is some form of readiness on their part,” Ige observes.

Many companies are already seeking legal advice. “We have seen an uptick of fintechs seeking legal advice on the new digital lending law, open banking and the data protection law,” he says.

But readiness looks different depending on who you are. Startups entering the market will find it easier to comply since they have to show proof of compliance to get onboarded with authorities, partners, and API providers in the first place.

For companies already doing business, the picture is murkier. “For those already in business, without a strong enforcement stance from the regulators, we might get some elements who would feel they can definitely bypass some of these stipulations, particularly regarding digital lending and data protection,” Ige warns.

The regulators have made their intentions clear. Administrative fees, prohibitions, suspensions, licence revocations, and massive financial sanctions. The penalties are written into the regulations.

"We have seen the CBN, FCCPC and NDPC sanction companies in the past. There are records of sanctions on companies based on the issues of digital lending, data protection and non-compliance with CBN regulations," says Ige.

The NDPC’s list of over 1,300 defaulters last year and the FCCPC’s history of sanctioning lending violations prove they are not bluffing.

Yet Ige believes a more collaborative approach might work better. “The truth is that the onboarding fees of the regulators are outrageous, thereby inhibiting entrants and discouraging compliance,” he argues. High enough to lock out new entrants and discourage compliance entirely.

Read: 5 big changes PoS operators must know about CBN’s new agency banking rules

“The aim is to ensure the rights of lenders and data subjects are protected, and the respective sectors are regulated, not to be a revenue-generating venture for the government,” he adds.“I believe the regulators must collaborate with the stakeholders by organising roundtables to understand how the laws affect all the parties.”

What are operators actually worried about? According to Ige, most have a general sense they need help, but aren’t always sure. “Most operators are concerned about general compliance with the CBN regulations, so they take their KYC, AML/CFT, due diligence and onboarding processes very seriously.”

But lately, patterns are emerging. “We have observed an uptick in fintechs requesting advice on the Open Banking Framework and its operations,” Ige notes. Data protection is another hot topic. “We have seen a rise in fintechs requesting clarity on data protection regulations, especially matters of cross-border processing, registration with the regulator and risk assessments.”

Digital lending companies are finally starting to ask questions. “We have also seen some loan companies requesting advice on the new digital lending regulations, which means it is beginning to take root in the space.”

The confusion around digital lending regulations stands out. “I believe there should be some form of awareness programme for the digital lending regulation because that is usually the most confusing for digital lending operators that we service,” Ige says.

Data protection fees remain the main sticking point, although fintechs generally grasp the binding regulations once explained.

Financial inclusion is deepening, and the economy is supposedly improving, so we should expect more companies to seek this kind of advisory support throughout 2026. “I believe this rise will continue in 2026 as financial inclusion deepens and the financial economy improves,” Ige predicts.

For now, the message is that compliance is coming, whether the industry feels ready or not.

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