BUSINESS RISKS ASSOCIATED WITH FINTECH OPERATIONS IN NIGERIA’S REGULATORY ENVIRONMENT A CASE STUDY OF PAYMENTS AND WALLETS FINTECH PLATFORMS

This study examined the business risks associated with Fintech operations within Nigeria's regulatory environment, with a focus on the impact of regulatory compliance costs, regulatory fragmentation, and licensing delays on innovation capacity, cybersecurity resilience, and operational sustainability. A descriptive cross-sectional survey design was employed to collect data from 152 management-level respondents across licensed Fintech firms in Nigeria. Multiple regression analysis was used to test the formulated hypotheses. The findings reveal that regulatory compliance costs significantly hinder innovation capacity (β = -0.452, p < 0.001), regulatory fragmentation increases cybersecurity vulnerabilities (β = 0.381, p < 0.001), and licensing delays impede operational sustainability (β = -0.294, p < 0.01). These results underscore the need for regulatory reforms to streamline compliance processes, harmonize regulatory frameworks, and expedite licensing procedures to foster innovation while ensuring operational resilience in the Fintech sector. The study recommends the establishment of a Single Regulatory Window, the adoption of RegTech tools, and enhanced collaboration between regulators and Fintech firms to reduce regulatory fragmentation and its adverse effects on industry growth. These findings align with recent studies, which highlight the negative impact of regulatory fragmentation on innovation and operational efficiency in the global Fintech landscape.