CBN urged to enforce financial disclosure by fintechs, MFBs

By Abubakar Yunusa

Finance experts have called on the Central Bank of Nigeria to compel all deposit-taking financial technology firms and microfinance banks to publish their annual financial reports, insisting that institutions entrusted with public funds must be held to higher standards of transparency.
The call was made during the latest edition of the Drinks and Mics Podcast hosted by financial analyst, Ugo Obi-Chukwu.
The experts argued that the current regulatory framework places heavier disclosure obligations on commercial banks while many fintech operators and microfinance banks are not subject to the same level of public scrutiny.
Speaking during the discussion, Obi-Chukwu said financial institutions holding customer deposits should be required to make their financial performance publicly available.
He questioned why fintech companies that accept deposits were not mandated to publish annual reports, noting that such a requirement should also apply to all microfinance banks.
“My only sticking point for fintechs is that I can’t wait for when the CBN will compel fintechs to publish their annual reports. I don’t know why they wouldn’t do that. Actually, if they’re holding deposits, they should. In fact, all microfinance banks should,” he said.
Backing the proposal, finance expert Dele Akintola maintained that public financial disclosure should be a standard requirement across the financial services industry.
According to him, similar practices are already in place in other African countries, including Kenya, where financial service providers are expected to publish their reports.
“All financial services should report by default. It happens in Kenya. All brokers,” Akintola stated.
Also speaking, the Managing Director and Chief Executive Officer, Asset Management at Renaissance Capital Africa, Arnold Dublin-Green, said traditional banks currently operate under stricter regulatory obligations than fintech companies.
He explained that commercial banks are required to meet rigorous capital adequacy standards and maintain acceptable non-performing loan ratios, unlike many fintech operators.
Dublin-Green described the situation as a regulatory imbalance and urged authorities to review the framework to ensure greater accountability across the financial sector.
The experts noted that increased transparency would boost public confidence, strengthen corporate governance and provide customers with better insight into the financial health of institutions managing their deposits.