By James Edeh

In the traditional halls of Nigerian finance, capital was once defined solely by the strength of a balance sheet and the depth of physical vaults. However, as the industry transitions into a tech-enabled era, marked by a staggering 11.2 billion electronic transactions processed by NIBSS in 2024 alone, the definition of capital has undergone a fundamental shift.

In 2026, ‘Character’ seems to have emerged as the most vital form of liquidity. In a market where digital fraud and systemic volatility can erode trust overnight, a bank’s commitment to regulatory compliance is no longer a ‘back-office’ function; it is the primary bridge that builds and sustains customer confidence. This evolution is driven by a sophisticated web of regulations from the Central Bank of Nigeria (CBN) and the Federal Competition and Consumer Protection Commission (FCCPC), which have moved from reactive policing to proactive architecture. With the introduction of the Digital, Electronic, Online, or Non-traditional Consumer Lending Regulations 2025, the authorities have set a clear mandate: innovation must be tethered to integrity.

The current regulatory landscape is defined by milestones that signal a maturing ecosystem. Nigeria’s successful exit from the FATF ‘grey list’ in October 2025 served as a global validation of the country’s strengthened Anti-Money Laundering (AML) and Counter-Terrorism Financing (CFT) frameworks.

The mandatory integration of the Bank Verification Number (BVN) and National Identification Number (NIN) has become the ‘digital DNA’ of banking. This has not only reduced identity fraud, which saw a significant decrease from ₦52.26 billion in 2024 to ₦25.85 billion in 2025, according to the Nigeria Inter-Bank Settlement System NIBSS, but has also provided a secure pathway for 74% of the population to enter the formal financial system. Additionally, the CBN’s 2024–2026 recapitalisation drive, requiring minimum capital thresholds of up to ₦500 billion for international banks, ensures that ‘character’ is backed by the resilience to withstand economic shocks, effectively mandating that only the most robust and compliant players remain at the table.

As of January 2026, the Nigeria’s Securities and Exchange Commission (SEC) has also significantly increased the minimum capital requirements (MCR) for fintechs and digital asset operators, with compliance required by June 30, 2027. Key thresholds include ₦100 million for Robo-Advisers (up from ₦10m), ₦200 million for Crowdfunding Intermediaries (up from ₦100m), and ₦2 billion for Digital Asset Exchanges (DAX).

At FairMoney MFB, compliance is far more than a regulatory check box, it is the bedrock of our operational integrity and strategic growth. We have engineered a proactive compliance architecture that reaches every level of our organisation, ensuring that we remain with the highest industry standards. By embedding rigorous oversight, ethical governance, and transparent reporting into our core DNA, we have cultivated a foundation of trust that serves as a vital bridge between our organisation and key government stakeholders.

For forward-thinking institutions, compliance is being rebranded as a competitive advantage. In the digital space, where customers cannot visit a branch to demand answers, the ‘seal of approval’ from regulators acts as a proxy for safety.

This is where the concept of Character-as-Capital becomes most visible. By maintaining a strict adherence to responsible debt recovery practices and strictly adhering to the Nigeria Data Protection Act (NDPA), Institutions such as FairMoney MFB demonstrate how compliance-led models can support responsible digital lending. FairMoney’s adherence to the FCCPC’s Digital Lending Guidelines and its proactive stance on product transparency – clearly stating all interest rates and fees upfront – exemplifies how compliance can be used to build a ‘predictability model’ for the consumer. When a bank follows the rules even when it is more expensive to do so, it builds a reservoir of goodwill that serves as a moat against more aggressive, less ethical competitors.

The shift toward a compliance-first culture is yielding a tangible ‘Trust Dividend’. In late 2025, FairMoney’s national scale long-term issuer rating was upgraded from BBB(NG) to BBB+(NG) by Global Credit Rating (GCR), and its short-term rating from A3(NG) to A2(NG). Internal audited records show that in FY2025 FairMoney disbursed over ₦250 billion in loans and paid out over ₦7 billion in interest to savers, proving its ability to return value to a customer base that views the platform as a trusted platform for savings and credit services.

Between 2021 and 2024, FairMoney saw a significant growth in its customer deposit base. This growth has facilitated a reduced cost of funds; because users trust the bank’s CBN and NDIC-licensed status, FairMoney now funds over 56% of its loan book through customer deposits. Recent data from the Nigerian Exchange Limited and banking industry suggests that as compliance improves, so does the velocity of money. Total deposits in the Nigerian banking sector rose by 63% to ₦136 trillion by late 2024, a growth driven by a population that finally feels the digital financial infrastructure is safe enough to hold their life savings.

In the coming years, the winners in the Nigerian banking sector will not be those with the largest marketing budgets, but those with the strongest ethical spine. Compliance is the bridge that connects a sceptical populace to the digital economy. It is the assurance that a customer’s data is private, their deposits are insured, and their treatment is fair. As we look toward 2030, Nigeria’s economic expansion will only be reachable if the banking sector continues to treat Character as its New Capital.

By embracing the rigorous demands of current regulations, financial institutions are not just following the law; they are investing in the most valuable asset any bank can own: the unshakeable confidence of its people. The road ahead requires a commitment to transparency that transcends the app interface and penetrates the core of institutional culture.

James Edeh is the Head of Compliance at FairMoney Microfinance Bank

Ever noticed how easy it is to get a movie in Nigeria, sometimes before or right after it hits cinemas? For decades, films, music, and series have circulated in ways that felt almost natural; roadside DVDs, download sites, and streaming hacks became part of how we consumed entertainment. It became the default way people experienced content.

But what many don’t realise is that what feels normal for audiences has real consequences for the people behind the screen. As Nigeria’s creative industry grows into a serious economic force, piracy isn’t just a “shortcut” anymore; it’s a drain on the very lifeblood of creativity.

The conversation hit the headlines again with the alleged arrest of the CEO of NetNaija, a platform widely known for downloadable entertainment content. Beyond the courtrooms, the story reopened an important question: how did piracy become so normalised, and why should we care now?

Filmmaker Jade Osiberu put it into perspective in a post that resonated across social media: for many Nigerians, pirated CDs and downloads were simply the most accessible way to watch films. Piracy didn’t just appear from nowhere. It grew because legal options were limited, streaming platforms scarce, and affordability a challenge. In other words, piracy is as much a story about opportunity and access as it is about legality.

The cost of this convenience is real. Every illegally downloaded or shared film chips away at revenue that sustains the people who create it. Producers risk their own capital to tell stories, actors and crew rely on fair compensation, and distributors and cinemas lose income when pirated copies hit screens first. Over time, this doesn’t just hurt profits; it erodes confidence in investing in new projects and threatens the ecosystem that allows Nigerian creativity to flourish.

Piracy is also about culture and necessity. Many audiences never intended harm; they simply wanted stories in a system that didn’t always make legal access easy. Streaming services were limited or expensive, internet access was spotty, and distribution was weak outside major cities. Piracy became the default, and generations grew up seeing it as normal. But what was once a practical workaround has now become a barrier to sustainable growth.

This is where enforcement comes in. Legal action, like the NCC’s intervention against NetNaija, isn’t about pointing fingers at audiences; it’s a reminder that creative work has value and that infringement carries consequences. It’s about sending the message that the people who write, produce, act, and edit these stories deserve protection. Enforcement alone isn’t enough, though. Without accessible, affordable legal alternatives, audiences will naturally gravitate back to piracy.

The bigger picture is this: Nollywood is no longer just a local industry. It’s a global player, employing thousands, creating cultural influence, and generating revenue across multiple sectors. Its growth depends not just on talent, but on a system that rewards creators, protects their work, and builds a sustainable ecosystem.

Piracy may have been normalised in the past, but its consequences today are impossible to ignore. It threatens livelihoods, investment, and the future of stories that define Nigeria culturally and economically. Understanding its impact isn’t about shaming audiences or vilifying platforms; it’s about valuing the people behind the content, the stories themselves, and the industry’s potential.

The real question isn’t just whether piracy is illegal. It’s whether Nigeria is willing to build an entertainment ecosystem where creators thrive, stories get told properly, and audiences can enjoy them without undermining the very people who made them possible. Until that happens, the cost of convenience will keep being paid by someone else, and it’s the people who create the magic.

By Timi Olubiyi, PhD

The ongoing tensions in the Middle East may seem geographically distant from Nigeria, but the economic effects are already being felt in very real and personal ways across many countries, including Nigeria, even though light at the moment. For ordinary Nigerians, the impact shows up in rising fuel prices, which are already happening. So, we may be experiencing increased transportation fares, higher food costs, and a volatile naira if the unrest continues. Remember, the electioneering and campaign season is almost here politicians may face a far more complex environment than in previous cycles. With the current reality, voters may have less patience, interest and may be more economically stressed, and more focused on immediate survival than long-term projections, which the elections stand for.

The first and most immediate effect of global tension anywhere is usually a spike in crude oil prices due to fears of supply disruption. Ordinarily, this should appear like a positive impact for Nigeria as an oil-exporting country because higher oil prices should increase government revenue, but the benefit is often limited by our production challenges, oil theft, pipeline vandalism, and largely the pegged Organisation of the Petroleum Exporting Countries (OPEC) output quotas. In reality, Nigeria may not produce enough oil to fully take advantage of the high prices that may arise. At the same time, higher global oil prices generally increase the cost of imported refined fuel, shipping, insurance, and manufactured goods. Since Nigeria still imports a dominant and significant portion of what we consume from abroad, these higher global costs may quickly translate into domestic inflation if the trend continues, and this can happen because it is an external force beyond control. The result will be painful, though small businesses will struggle even more with operating expenses, transport costs, and transaction costs will climb further. Already, many households are battling many challenges,s but the current reality will have their purchasing power shrinking even more. Inflation in Nigeria is not just a statistic; it is the daily reality of families and businesses who must continue to spend even more for the same needs and services. In an economy where food inflation is already high, any additional imported inflation would worsen hardship and deepen poverty levels.

Another major effect is on foreign exchange stability, and campaign financing itself could also be affected in the coming elections if the global tension is not tamed early enough. Whenever global tensions rise, investors move their funds to safer markets, and this often weakens emerging market currencies, and the Naira is not immune. A weaker naira makes imports even more expensive, which could further fuel inflation. It may also increase the cost of servicing Nigeria’s external debt, putting more pressure on government finances. The global uncertainty that we will experience in the coming weeks to months may likely reduce foreign portfolio investment in Nigerian equities and bonds. Investors may prefer to wait and see how things unfold. This cautious sentiment would slow capital inflows to the capital market and into our economy, and the outcome is better imagined. Companies that rely heavily on imported raw materials are especially vulnerable to exchange rate volatility that will come with the current reality.

If tensions in the Middle East escalate further, for instance, through a broader regional conflict involving major oil producers or a prolonged disruption of key shipping routes, oil prices may even surge further sharply, global inflation could intensify, and financial markets could become more volatile. In such a scenario, Nigeria might see temporary revenue gain,s but inflation could accelerate faster than income growth in my opinion. The naira could face renewed pressure, and interest rates might remain high as monetary authorities attempt to control inflation. Poverty levels could worsen in real time because, as real wages fail to keep pace with rising prices, the number of people living below the poverty line increases. Youth unemployment, already a concern, may increase if businesses cut back on hiring due to uncertainty or think of reducing staff numbers. In extreme cases, prolonged global instability could even disrupt remittance flows and compound domestic economic stress when expectations are not met.

However, within this difficult environment lies an opportunity. Global instability reinforces an important lesson: Nigeria must reduce its vulnerability to external shocks. Overdependence on crude oil exports leaves the country exposed to geopolitical events thousands of kilometres away. True resilience will come from diversification of the revenue base. The government must accelerate investment in local refining capacity to reduce dependence on imported petroleum products. Strengthening domestic agriculture is critical to reducing food imports and improving food security, but most important ensure security. Supporting small and medium enterprises as well, through access to credit, low-interest loans and infrastructure can stimulate local production and job creation. Fiscal discipline is also essential; any windfall gains from higher oil prices should be saved in stabilisation funds, invested in infrastructure, education, healthcare, and technology, rather than consumed through recurrent expenditure. Strengthening foreign exchange management through improved export diversification, including non-oil exports such as agro-processing, solid minerals, and services, will help stabilise the naira over time.

For businesses, the path forward requires adaptation and sourcing all required resources locally where possible, hedging against currency risks, investing in energy efficiency, and building financial buffers. The era of predictable global markets is over; volatility is becoming the norm rather than the exception.

Ultimately, the unfolding tensions in the Middle East serve as both a warning and a call to action for Nigeria. The warning is clear: as long as the economy remains heavily tied to crude oil exports and imports of essential goods, distant conflicts will continue to shape domestic hardship. The call to action is equally clear: build a more diversified, production-driven, and self-reliant economy. If tensions escalate, Nigeria will feel the shockwaves through higher inflation, higher cost of fuel pump price, currency pressure, and deeper poverty. But if reforms are sustained and strategic investments prioritised, Nigeria can transform global uncertainty into a catalyst for structural change. The future will depend not on whether oil prices rise or fall, but on whether Nigeria uses each episode of global tension as an opportunity to strengthen economic resilience, protect vulnerable citizens, and build a stable foundation for long-term growth and prosperity. Good luck!

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Dr Timi Olubiyi is an expert in Entrepreneurship and Business Management, holding a PhD in Business Administration from Babcock University in Nigeria. He is a prolific investment coach, author, columnist, and seasoned scholar. Additionally, he is a Chartered Member of the Chartered Institute for Securities and Investment (CISI) and a registered capital market operator with the Securities and Exchange Commission (SEC). He can be reached through his Twitter handle @drtimiolubiyi and via email at dr***********@***il.com for any questions, feedback, or comments. The opinions expressed in this article are solely those of the author, Dr Timi Olubiyi, and do not necessarily reflect the views of others.