Welcome to Regcompass Regulatory Roundup June Edition
Welcome to our June Regulatory Roundup from Regcompass. In this Regcompass Regulatory Update, we bring you the very latest regulatory news and insights across Nigeria, Africa, and beyond. Let’s dive into a thoughtful and comprehensive overview of recent developments shaping the compliance and business landscape.
This edition features a curated look at key regulatory, policy, and market shifts – from new tax laws, financial sector reforms, and fintech innovations specifically impacting Nigerian regulatory trends, to digital payment frameworks and crypto advances across Africa. We also highlight important global regulatory trends that could influence your strategies. Our roundup is designed to keep you informed, help you navigate an evolving regulatory environment, and support your strategic decision-making.
Here’s what’s inside this month’s update:
Table of Contents
News in Nigeria
The Federal Government enacts new tax laws
The Federal Government has announced the enactment of comprehensive new tax laws aimed at broadening the tax base, simplifying compliance for businesses, and enhancing government revenue generation. The new legislation introduces changes to various tax categories, including corporate income tax, value-added tax, and excise duties, alongside provisions for digital economy taxation.
Federal Government to link credit scores to National Identification Number (NIN)
The Nigerian Consumer Credit Corporation (CREDICORP) has issued a new policy mandating Nigerians to link their NIN number to their credit scores. This way all credit information across different financial institutions will be situated in a centralized national credit bureau.
NIPOST races to become fintech
Nigerian Postal Service (NIPOST) is rapidly accelerating its transformation into a major player in global digital payments, holding both a Super Agents License and an International Money Transfer Operator’s license, this strategic move by NIPOST aims to bolster national efforts in fostering financial inclusion, particularly within underserved regions. In light of this, how can NIPOST reconcile its dual role as operator and regulator without compromising its universal service obligation? Further, how can NIPOST effectively enforce regulations on competitors while also competing directly against them?
CBN issues Routine Transitional Guidance
The Central Bank of Nigeria has issued Routine Transitional Guidance for institutions still completing their transition from the temporary regulatory support provided, mostly in response to the economic impact of the COVID-19 pandemic.
CBN suspends dividends, bonuses and foreign investments for banks under regulatory forbearance
The Central Bank of Nigeria has issued a directive instructing banks operating under regulatory forbearance to suspend dividend payments, defer bonuses for executives, and halt investments in foreign subsidiaries or offshore ventures. This measure is a strategic move to reinforce capital buffers, improve balance sheet resilience, and ensure prudent capital retention within the banking sector.
SEC bans Independent Director Transmutation
The Securities and Exchange Commission (SEC) has issued a directive that Public Companies and key Capital Market Operators can no longer convert Independent Executive Directors (INEDs) into Executive Directors within the same company or its Group. This directive takes immediate effect, and compliance is mandatory.
SEC ramping up public notices against unregistered trading and investment platforms
The Securities and Exchange Commission (SEC) warns the public about unregistered trading and investment platforms such as Zugacoin, Samzuga GPT, CM trading and Value Growth platform. The Commission clarifies that the promoters or issuers of these platforms are not registered to operate in the Nigerian Capital Market, nor have they received SEC approval for public issuance. The public is strongly advised to avoid engaging with these platforms and to perform their due diligence before participating in any investment scheme.
CAC reviews service fees effective 1 August
The Corporate Affairs Commission (CAC) is set to review certain service fees, effective August 1, 2025. This decision stems from a careful assessment of current economic realities and increasing operational costs, alongside extensive engagement with key stakeholders. According to the CAC, this adjustment will enable it to continue delivering prompt, efficient, and technology-driven services, meeting stakeholder expectations and benefiting the Nigerian economy.
NIBSS unveils National Payment Stack
The Nigeria Inter-Bank Settlement System (NIBSS) has officially launched the National Payment Stack (NPS), set to revolutionize Nigeria’s instant payment ecosystem. This initiative builds upon the success of NIBSS Instant Payments (NIP) and aims to deepen financial inclusion, catalyze innovation in digital payments, and enhance government collections. As the digital economy expands, the NPS will provide secure, resilient, and forward-looking infrastructure, aligning with Nigeria’s ambition for a $1 trillion economy.
Across Africa: Welcoming Innovation While Addressing Challenges
Central Bank of Kenya extends digital payment hours
The Central Bank of Kenya (CBK) is set to extend the operating hours for its Real-Time Gross Settlement (RTGS) system, known as the Kenya Electronic Payment and Settlement System (KEPSS). Starting 1 July 2025, KEPSS will operate from 7 AM to 7 PM on business days, a significant increase from its current 8:30 AM to 4:30 PM schedule. This move signals a shift in Kenya’s approach to time-sensitive digital transactions, enabling real-time settlement across longer windows.
Kenya proposes taxing startup employee shares at vesting
Kenya’s Finance Bill 2025 is proposing the removal of the tax deferral on Employee Share Ownership Plan (ESOPs). This taxation would occur at the point of vesting, potentially burdening employees with tax liabilities before realising any financial gain. There are concerns that the proposal raises additional complications for founders and employees. Currently, dividends from such shares are subject to a 5% withholding tax and if the shares are not traded on the Nairobi Securities Exchange, employees may face capital gains tax when selling. This approach may force start ups to phase out ESOPs(Employee Stock Option Plans)
Ethiopia mandates digital payment integration
In line with the Digital Ethiopia 2025 strategy, government institutions at all levels are now mandated to support all approved digital payment providers. This directive, effective within 90 days of issuance, signals a shift from optional to compulsory digital payment integration across public services. The move aims to strengthen digital payment regulation and deepen financial inclusion throughout Ethiopia.
Central Bank of Kenya (CBK) Licenses 41 additional Digital Credit Providers
The Central Bank of Kenya (CBK) has licensed 41 additional Digital Credit Providers (DCPs) under Section 56(2) of the CBK Act. This brings the total number of licensed DCPs to 126. This move aims to ensure compliance with relevant laws and, more importantly, protect consumer interests. Other applications are still under review, awaiting necessary documentation. The CBK is urging applicants to respond quickly to speed up the evaluation process.
Flutterwave secures a Payment Service Provider (PSP) License in Cameroon
Flutterwave has secured approval to operate as a licensed payment service provider in Cameroon, strengthening its growing African presence and regulatory strategy. With this new license, Flutterwave is set to deepen financial inclusion and facilitate seamless transactions for merchants and consumers in Cameroon. This move represents a critical step towards unifying Africa’s fragmented payment landscape.
Across the World
UK Launches the Smart Data Group to expand Open Banking
The UK government has officially launched the Smart Data Group, a new cross-sector initiative. This follows the passage of the Data (Use and Access) Bill in Parliament and aims to extend the significant benefits of open banking to other key industries, including energy, telecommunications, retail, and finance.
Interpol urges Nigerians to tackle AI deepfake threats
The International Policing Agency (Interpol) is urging Nigerian professionals and global counterparts to join the fight against the rapidly growing threat of synthetic media. This includes deepfakes and AI-generated voice clones, which are being used to defraud and destabilize societies. This initiative marks a step toward strengthening international capacity to combat AI-driven manipulation, a rising risk to digital trust.
FATF publishes new guidance on Financial Inclusion, Anti-Money Laundering and Terrorist Financing
The Financial Action Task Force (FATF) has released new guidance encouraging a proportionate, risk-based approach to anti-money laundering (AML), counter-terrorist financing (CTF), and counter-proliferation financing (CPF). This aims to help countries and the private sector integrate more people into the formal financial system. The guidance directly impacts national AML/CFT frameworks, raising expectations for businesses to strengthen their compliance programs.
Crypto Scoop
Visa and Yellow card Partner to expand stable coin payment solution in Africa
Yellow Card, a licensed stablecoin payments provider, has announced a partnership with Visa. This collaboration aims to enhance cross-border transactions and strengthen financial infrastructure across over 20 countries in Africa and other emerging markets. The partnership underscores Yellow Card’s growing role as a crucial financial infrastructure provider in these regions.
India cracks down on crypto tax evaders, seizes $327,000
India is intensifying its efforts against crypto tax evasion, leading to the seizure of $327,000. This crackdown follows the discovery of discrepancies between taxpayer-reported information and data from digital asset platforms and Tax Deducted at Source (TDS) returns. This move signals the end of regulatory leniency, paving the way for serious industry innovation and the integration of investors into a compliant digital finance architecture.
U.S Stablecoin Bill to push crypto to traditional finance
The passage of the Stablecoin Bill has raised discussions that this legislation will bring more traditional financial institutions into the cryptocurrency market.The bill, if signed into law, will establish guardrails for stablecoins, including full reserve backing by U.S dollars and treasury bills, monthly audits, and consumer protections.
South Korea’s Ruling Party unveils plan to allow stablecoins
South Korea’s ruling party has proposed the Digital Asset Basic Act, a legislative initiative aimed at fostering growth in the local cryptocurrency market by permitting the issuance of stablecoins. The proposed bill would enable domestic companies to issue stablecoins, provided they meet a minimum equity capital requirement of ₩500 million (approximately $368,000 USD). However, this legislative push faces notable opposition from the Central Bank of Korea. The Bank expresses concerns that the issuance of stablecoins by non-bank entities could weaken monetary policy effectiveness.
Deals and Raises
- Instapay Closes $3 Million in a Series A2 round to expand its product and geographical reach.
- Grifin Raises $11 Million in Series A founding round led by Nava Ventures
- Payabli Raises $28 Million to expand embedded payments and AI tools
- Ramp Raises $200 Million at new $16 Billion valuation
- PaidHR closes a $1.8 Million seed round to expand business operations
Mergers and Acquisitions
- Lemfi Acquires Pillar to boost immigrant credit access in the UK and Globally
- Wix Buys Base44, 6-month old solo-owned vibe coder
- NetGuardians and Intix Merge to create transaction intelligence firm Vyntra
- Xero Acquires Melio, a B2B Bill pay platform for $2.5 Billion
- Chowdeck Acquires Mira to power restaurant operations across Africa
Join the Conversation:
Do you have questions or insights about the regulatory landscape in your region? Reach out to us on any of our social media handles, email and we would be available to help.
Please note that the information provided in this article does not constitute legal advice and should not be construed as such.
You can also read and catch up with the other regulatory roundup on our website
