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Introduction
May 2026 proved an eventful month in Nigeria's regulatory landscape, with significant activity across telecommunications, financial services, capital markets, and digital infrastructure. The Regulatory Digest for May highlights the published NCC's draft Business Rules for Mobile Virtual Network Operations, a framework that could reshape competitive dynamics in Nigeria's mobile sector.
This month's Digest also highlights CBN's steady hold of its monetary policy rate at 26.5% amid persistent inflationary pressures, while introducing tighter identity-verification controls through revised BVN reforms. The SEC moved to modernise capital market settlement cycles and crack down on unregistered investment schemes, while agencies such as NITDA and FMCIDE advanced digital economy initiatives at both national and continental levels.
Across Africa, regulatory experimentation in fintech and continued investment in telecoms infrastructure further underscored the continent's accelerating digital transformation agenda.
A quick summary...
Nigerian Communications Commission (NCC) Publishes Draft Business Rules on Mobile Virtual Network Operators (MVNO)
The Nigerian Communications Commission (NCC) released a draft business rules governing Mobile Virtual Network Operators, structured around a five-tier licensing model ranging from pure service resellers (Tier 1) to unified virtual operators (Tier 5). The rules establish binding timelines for onboarding: 10 days for host acknowledgement, 120 days maximum for full commercial agreement, and it introduces a Benchmark Selling Price mechanism as the revenue-sharing baseline, with MVNO shares ranging from 25% (Tier 1) to 50% (Tier 4/5).
The Commission also retains broad intervention powers over pricing, capacity allocation, dispute resolution, and sequencing practices while mandating compliance with existing subscriber registration, QoS, and consumer protection regulations. The draft rules would significantly reduce the structural leverage HNOs previously had, which affected MVNO entry, potentially lowering barriers to market participation and driving competition, affordability, and service diversity.
However, the framework carries notable risks: the Commission-determined Benchmark Selling Price introduces regulatory pricing rigidity that may not reflect market dynamics, and the 25% revenue floor for Tier 1 MVNOs may prove commercially unviable relative to established MNO retail offerings. The prescriptive tier boundaries also limit operational flexibility, and heavy reliance on Commission intervention for dispute resolution could create bureaucratic bottlenecks that undermine the efficiency gains the rules are intended to deliver.
Trends and Insight
CBN Retains the Monetary Policy Rate
The most significant regulatory action from the Central Bank of Nigeria was the conclusion of the 305th Monetary Policy Committee (MPC) meeting. The CBN retained the Monetary Policy Rate (MPR) at 26.5% and stated that inflationary pressures remain a concern and require a cautious policy response. The Monetary Policy Rate is the benchmark used by the CBN to guide lending and borrowing activities within the economy.
This decision means that borrowing costs are likely to remain high for the time being. Businesses and individuals seeking loans may continue to face relatively high interest rates, although the policy is intended to curb excessive spending and support efforts to gradually slow inflation.
This decision reflects the Apex Bank's continued commitment to reducing inflation, maintaining exchange rate stability, and preserving macroeconomic stability.
CBN Revises Enforcement Timeline for POS Geo-Fencing
The CBN issued a revised circular dated May 29, 2026, updating the enforcement timeline for mandatory POS terminal geo-fencing, originally introduced under its August 2025 payments modernisation directive. The geo-fence radius has been expanded from 10 metres to 70 metres, and the enforcement deadline has been pushed to August 1, 2026, with compliance evidence due to the CBN via paymentdata@cbn.gov.ng by July 31, 2026.
This is part of a broader push toward ISO 20022 payment messaging standards and mandatory geotagging of all payment terminals across Nigeria's financial ecosystem. All DMBs, MFBs, MMOs, PTSPs, PSSPs, Super Agents, and licensed operators are in scope and must resolve outstanding issues with the National Central Switch before the deadline.
The enforcement date signals that the CBN is moving from advisory to punitive. In other words, non-compliant terminals risk being flagged, restricted, or deactivated, directly impacting transaction processing and revenue for these operators. The radius expansion from 10m to 70m is a pragmatic concession to real-world deployment challenges, such as markets, plazas, and high-density commercial areas where precise GPS pinning is difficult.
This gives merchants and agents greater operational flexibility while still anchoring terminals to verified locations to curb fraud and the abuse of terminal relocation. For businesses and agents, the immediate priority is to audit all deployed POS terminals for GPS/geotagging capability, work with their PTSPs to update terminal configurations, and submit compliance reports before July 31.
CBN Begins the Implementation of BVN Reforms
The CBN has implemented revised operational requirements relating to the Bank Verification Number (BVN) framework as stated in a circular, taking effect from May 1, 2026. The updated measures introduced stricter customer identity controls aimed at reducing fraud and strengthening financial system integrity, The reforms introduced tighter controls over phone number changes linked to BVN profiles and enhanced monitoring of suspicious banking activities through a temporary watchlist.
Financial institutions have been directed to comply with the revised onboarding and verification standards as part of broader financial risk management reforms. As such,this implementation aligns with the CBN's wider digital identity and anti-fraud agenda particularly its emphasis on integrating the BVN and National Identity Number (NIN) verification systems.
SEC issues guidance for capital market transition to T+1 Settlement Cycle
The SEC has announced the transition to a T+1 settlement cycle for equities and commodities transactions cleared and settled by the Central Securities Clearing System (CSCS), with effect from Monday, June 1, 2026. This migration is a part of the commission's ongoing market modernisation initiatives that are geared towards enhancing market efficiency, strengthening risk management, reducing counterparty exposure, and generally aligning the Nigerian capital market with international standards and global best practices.
SEC issues warning against unregistered online investment schemes
The SEC has issued a public notice to the general public on the rapid promotion of unregistered online investment schemes on social media applications and websites. The Commission highlighted that these investment schemes portray hallmark signs of prohibited investment schemes and advised that the public verify the registration status of any platform offering investment opportunities through its dedicated portal.
SEC Mandates Registration for Commodity Warehousing and Collateral Management Operators
The Agency has issued a circular mandating the registration of all Collateral Management Companies, Warehouse Operators, and Warehouses linked to commodity exchanges or involved in the issuance of electronic warehouse receipts for trading activities, pursuant to the Investments and Securities Act 2025 and related SEC Rules. The SEC clarified that entities operating under informal or transitional arrangements are not deemed automatically registered and must submit complete registration applications within 90 days of the circular. Incomplete applications or failure to provide additional information within stipulated timelines will not satisfy compliance requirements.
Affected operators should promptly assess whether their activities fall within the scope of the circular, review the applicable SEC Rules on Commodity Exchanges, Warehouse Receipt Systems, and Collateral Management Operations, and commence registration processes early to avoid regulatory exposure. The Circular takes immediate effect, and the SEC may issue additional transitional guidance where necessary.
FMCIDE Launches the 3MTT Programme
The FMCIDE has announced a landmark partnership with Hello.cv in a $10 million activation to connect Nigerian tech talent with recruiters and employers across the world. The partnership is expected to provide 20,000 3 Million Technical Talent (3MTT) fellows with exclusive access to Hello.cv's services, and marks a significant step in the Federal Government's agenda to position Nigeria as a leading tech talent nation in Africa.
NITDA Launches TWG to Advance Rapid Technological Development in Governance
NITDA inaugurated a new group called Technical Working Group (TWG) to unite key regulatory bodies under a single arm to foster collaboration for an innovative governance mandate. This group aims to break institutional silos and create an enabling ecosystem that accelerates innovation and national development.
NITDA and Federal University Lafia Furthers Existing Partnership
NITDA and Federal University, Lafia, are furthering their partnership to enhance the university's curriculum and research capabilities. This meeting is also a further to establishing a centre for Digital Intelligence and an Innovation Hub to foster entrepreneurship among students. The meeting aimed at translating the memorandum of understanding into tangible outcomes as the university aims at becoming one of Africa's best universities.
NITDA Engages with INAPEM Over an Inclusive Digital Ecosystem in Nigeria
NITDA engaged with the Chairman of the Board of Directors (PCA) and CEO of Angola's National Institute for the Support of Micro, Small and Medium Enterprises (INAPEM) and initiated discussions around the Nigerian startup ecosystem framework, digital innovation policies and strategies for fostering inclusive economic growth through technology and entrepreneurship.
The discussions reiterated the Strategic Roadmap and Action Plan (SRAP), which is a comprehensive strategic framework covering the period 2024–2027 designed to propel Nigeria’s tech ecosystem and achieve digital transformation. The discussions prioritised digital literacy, ecosystem development, IT talent advancement, digital infrastructure, policy implementation, and research-driven innovation. The discussions also seek to facilitate the robust implementation of the Nigeria Startup Act.
NCC Commences Review of the Telecommunications Policy
The Nigerian Communications Commission (NCC) in taking steps to review the nation's 26-year-old telecommunications policy, which could create changes to broadband deployment, internet competition, mobile tariffs, and network quality across Nigeria, organised a two day Stakeholder's Telecommunications Policy Review Workshop.
The review could see a leap to a strong emphasis on consumer protection and online safety amidst such massive usage. The framework is also said to facilitate the integration of satellite broadband services, tariff transparency with structured pricing, harmonised right of way fees, and a simplified one-stop permitting process across federal, state, and municipal governments. In line with the outcomes of the Workshop, a draft revised copy of the Telecommunications Policy will be published for comments and contributions.
FMTI Announces the Launch of AfCFTA Startup Acceleration Programme
The Federal Ministry of Industry, Trade and Investment announced the launch of `the AfCFTA Startup Acceleration Programme through the Minister, Dr. Jumoke Oduwole. The aim of the programme is to identify and support 30 African startups towards global scaling. This programme is done in partnership with AfCFTA-Korea Africa Foundation. The programme presents a viable opportunity for African startups to position themselves on the international market.
Helios Towers Invests in D. R. Congo's Telecoms Infrastructure Sector
Helios Towers is deepening its investment in the Democratic Republic of Congo telecoms sector with a $110 million expansion. This move signals confidence in one of Africa’s fastest-growing mobile markets and the broader surge in data demand. The investment is expected to fund additional tower sites and improve network reach in a country where large numbers of people still lack reliable coverage.
Strategically, the move shows how tower operators are positioning themselves as enablers of Africa’s digital infrastructure boom. It also reflects a wider shift in capital allocation toward markets where connectivity gaps and data consumption growth are creating clear long-term returns such as, expanded network coverage, improved service reliability, and internet access in underserved urban and rural areas, while also creating local jobs and strengthening digital infrastructure.
Bank of Tanzania Approves First Stablecoins Sandbox Copilot
Tanzania’s central bank has signalled a progressive stance on digital assets by approving its first stablecoin sandbox pilot. This approval allows NEDA Labs to test a shilling-pegged token under close supervision. The pilot is designed to examine issuance, transfer, and redemption while keeping the token fully backed by TZS reserves and preserving settlement in local currency. This matters because it shows regulators are choosing controlled experimentation over outright resistance. This follows Nigeria, Ghana, South Africa, and Tunisia, who have run pilot programmes.
The common thread is regulatory experimentation under controlled conditions, with African authorities focusing on reserve backing, settlement controls, and financial stability before any broader rollout. In that sense, Tanzania is joining a continent-wide shift toward supervised innovation, where the policy goal is to learn fast without destabilising the monetary system. More broadly, this move reflects a growing African model in which fintech innovation is being shaped through regulatory collaboration rather than confrontation.
The Regulatory Digest for May 2026 reflects a deepening commitment by Nigerian authorities and their other African countries to building more globally competitive, transparent, collaborative, and digitally enabled economies. From the NCC's effort to lower barriers to MVNO market entry, to the CBN's dual focus on price stability and financial system integrity, and the SEC's push towards market modernisation, these actions signal a clear policy direction: structured regulation as an enabler of growth rather than a constraint on it.
For businesses operating across these sectors, staying ahead of compliance timelines; particularly the SEC's 90-day registration window, the CBN's August POS geo-fencing deadline, and the NCC's forthcoming MVNO framework, will be critical in the months ahead.
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