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Read highlights major regulatory advances in Nigeria and Africa, covering financial regulation, the digital economy, AI governance, and telecoms in the month of October.
Regulatory Digest for September 2025
Introduction
This edition highlights major regulatory advances in Nigeria and Africa, covering financial regulation, the digital economy, AI governance, and telecoms. It features the SEC’s draft rules on Credit Enhancement Providers, CBN’s new Compliance Department and leadership directives, FMCIDE’s launch of Nigeria’s first open-source AI model, and key AI policy developments in Mauritius and Tanzania. This edition is important as it captures critical steps toward stronger regulatory frameworks that will drive innovation, governance, and economic growth within the region.
A quick summary...
SEC Issues Draft Rules on Credit Enhancement Facility Providers
On September 27, 2025, the SEC released draft rules to establish a regulatory framework for Credit Enhancement Facility Providers, which includes provisions on scope, eligibility, the registration process, requirements, governance, risk management, and permissible activities. The draft also proposes amendments to Rule 45 on Registrable Functions and Schedule 1 on registration fees and minimum capital requirements, securities, amongst others.
The draft SEC rules establish a regulatory framework for Credit Enhancement Facility Providers in Nigeria's capital market, outlining clear definitions, registration requirements, and the scope of activities. It mandates providers to maintain strict prudential standards, including high minimum capital, liquidity, and credit rating thresholds to ensure financial stability and risk management. The rules also specify governance, portfolio monitoring, and permissible functions, with penalties for non-compliance. Additionally, they update existing Commission rules to include Credit Enhancement Facility Providers as recognised capital market operators, setting registration fees and capital requirements accordingly.
Stakeholders are invited to review the draft and submit comments to the Rules Committee or the Director-General within two weeks of publication of the draft rules on the website.
CBN Establishes Compliance Department
The CBN has announced the formal establishment of its Compliance Department, which became operational in Q2 2025. As part of this reform, the Department now oversees non-prudential supervisory areas including financial crime supervision (AML/CFT/CPF and sanctions compliance), market conduct regulation, enterprise security (covering cybersecurity, data protection, and third-party risks), as well as corporate governance and ESG oversight.
Going forward, all regulatory reports, correspondence, and inquiries relating to these areas are to be directed to the Compliance Department. This reform signals the CBN’s commitment to enhancing compliance standards and embedding robust supervisory practices across the financial system.
CBN Issues Directive on Succession Planning for DSIBs
The CBN issued a circular to all Domestic Systemically Important Banks (DSIBs) on succession planning for Managing Directors/Chief Executive Officers (MD/CEOs). The circular reiterates the requirements under Section 2.14 of the 2023 CBN Corporate Governance Guidelines for Commercial, Merchant, Non-interest, and Payment Service Banks in Nigeria which mandate boards to establish succession plans to minimise leadership disruptions and prepare appointees for top management roles.
In line with this, DSIBs must obtain regulatory approval for the appointment of a successor MD/CEO no later than six months before the expiration of the incumbent’s tenure and must publicly announce the appointment at least three months before the planned exit. These measures reflect the CBN’s emphasis on sound corporate governance and its intent to mitigate risks associated with abrupt leadership changes in important institutions.
FMCIDE Partners with NDPC for its DevsinGovernment Programme
On September 25, 2025, the Federal Ministry of Communications, Innovation and Digital Economy (FMCIDE), in partnership with the Nigeria Data Protection Commission (NDPC), hosted the September edition of Devs in Government Programme. The session focused on "Building Trust in Government" and highlighted the importance of aligning digital innovation with strong data protection frameworks to promote transparency, accountability, and citizen trust in public institutions.
FMCIDE launches Nigeria's First Open Source AI Model and Hosts Digital Economy Events at UNGA80
The ministry has launched N-ATLAS V1, Nigeria’s first open-source multilingual and multimodal AI model, at the 80th UN General Assembly (UNGA80) in New York. The model puts African languages at the centre of AI development as it supports local languages including Yoruba, Hausa, Igbo, and Nigerian-accented English.
In addition, the ministry hosted a series of side events under the theme “Nigeria’s Digital Economy @ UNGA80.” The sessions mobilised partnerships, collaboration, and funding across priority areas including digital infrastructure, talent, artificial intelligence, and digital public infrastructure. The events brought together government leaders, investors, policymakers, innovators, and entrepreneurs to advance Nigeria’s digital economy agenda.
FMCIDE Launches NAIRS Public Lecture Series
The FMCIDE hosted the first edition of the Nigeria Artificial Intelligence Scheme (NAIRS) Public Lecture Series. The session featured notable scholars who presented their research on applying AI to detect and manage Tuta Absoluta-induced tomato diseases (a major threat to one of Nigeria’s most consumed crops). The lecture highlighted how AI-driven research under the NAIRS is being applied to address critical national challenges, aligning with Nigeria’s ambition to build a $1 trillion economy.
NITDA Partners with UBEC to Train Teachers
The National Information Technology Development Agency (NITDA), in partnership with the Universal Basic Education Commission (UBEC) launched a virtual three-week nationwide training programme for teachers. The training which had over 3,600 participants focused on the six areas of NITDA's National Digital Literacy Framework, including device use, data literacy, content creation, and safety. The initiative is aimed at equipping teachers with modern tools and innovative methods to improve classroom delivery, boost creativity, and prepare students for the digital economy.
NCC Stakeholders Push for National Telecom Academy
The Nigerian Communications Commission (NCC) has renewed calls for stronger collaboration with operators and industry stakeholders to address widening skill gaps threatening the sustainability of the nation’s telecoms sector by highlighting the percentage of Nigerian workers who currently possess digital skills.
Based on stakeholders' engagement, we may be seeing a national telecom academy, modelled on existing sectoral training institutes, providing practical instruction, certifications, and a pathway to retaining local talent soon.
NCC Approves Spectrum Lease Between MTN Nigeria and T2 Mobile
The Nigerian Communications Commission (NCC) has approved a spectrum lease agreement between MTN Nigeria and T2 Mobile (formerly 9Mobile) to boost network capacity and extend coverage. Under the three-year deal, effective October 1, 2025, MTN will lease 5MHz in the 900MHz band and 15MHz in the 1800MHz band from T2 Mobile.
The arrangement is linked to a national roaming agreement signed in June 2025, which enables T2 Mobile subscribers to connect via MTN’s infrastructure where coverage is limited. Industry observers note that the integrated approach of spectrum leasing and roaming supports infrastructure sharing and aligns with national goals of expanding connectivity and advancing digital inclusion.
NCC Develops New Cybersecurity Framework for Telecom Sector
The Nigerian Communications Commission (NCC) is finalising a cybersecurity framework designed to protect digital infrastructure and strengthen online safety across the communications sector. Expected to be implemented by telecom licensees in 2026, the framework will address risks posed by emerging technologies and enhance the resilience of Nigeria’s digital economy.
Developed through a two-phase stakeholder consultation, the framework is intended to serve as a strategic guide for managing critical risks across operational technology, data integrity, and network security. It aims to provide operators with clearer obligations, ensure better coordination against cyberattacks, and establish safeguards that extend beyond traditional confidentiality, integrity, and availability standards to encompass human safety and national resilience.
FMITI to Present Industrial Policy Strategies at West Africa IMT 2025
From October 21 - 23 2025, the Federal Ministry of Industry, Trade and Investment (FMITI) will present strategies for implementing Nigeria’s new National Industrial Policy at the upcoming West Africa Industrialisation, Manufacturing & Trade (IMT) Summit. The policy, which prioritises technology adoption, backward integration, standards enforcement, and MSME support, is designed to unlock local sourcing, modernise production systems, and strengthen Nigeria’s manufacturing base. By addressing key constraints such as infrastructure gaps, access to finance, and skills shortages, the Ministry aims to position the industrial sector as a driver of job creation, trade competitiveness, and sustainable growth. The summit will provide the first major platform to showcase how these policy reforms can shape Nigeria’s path to inclusive industrialisation.
Mauritius' FSC Publishes Guideline on the Responsible Use of AI in Financial Services
The Mauritius Financial Services Commission (FSC) has released a new Guidelines on the Responsible Use of AI in Financial Services, in response to the rapid AI uptake in fintech. These guidelines aim to ensure AI supports fair outcomes for customers while reinforcing existing governance, risk management, and internal controls. Key risks like bias, data privacy, and security are addressed by requiring human oversight, strong safeguards, and principles such as fairness by design and transparency. This initiative helps fintechs innovate safely while protecting consumers and maintaining trust in the financial ecosystem.
Note that the the FSC had previously published the Financial Services (Robotic and Artificial Intelligence-Enabled Advisory Services) Rules. This marks a trend of sector-specific AI regulation in Mauritius.
Tanzania Announces its Plan to Finalise its National Guideline for the Responsible Use of AI
Tanzania is finalising a national guideline for the responsible and effective adoption of AI. This guideline aims to promote the adoption of AI in the country. Additionally, Tanzania also plans to establish a national institute for digital and AI technologies. These developments build on the recommendations made in the country’s AI Readiness Assessment Report published in July, underscoring Tanzania’s commitment to creating a strong policy and institutional framework for AI.
September saw regulatory activities characterising innovation, initiatives, and strategic collaborations that further position Nigeria strategically in the race for digital transformation and responsible governance. The initiatives detailed in this edition underscore a clear commitment by regulators and policymakers to strengthen compliance, foster inclusive economic development, and ensure the ethical adoption of emerging technologies. As these frameworks and programmes continue to unfold, they will play a crucial role in building resilient institutions and sustainable ecosystems that support growth, transparency, and trust in the region’s evolving regulatory landscape.
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