AI compliance in Nigerian fintech advances as Pastel and FintechNGR unveil Sigma, an AI tool to fight fraud and enhance regulatory compliance in banks and fintechs

AI compliance in Nigerian fintech took a significant leap forward as technology firm Pastel partnered with the FinTech Association of Nigeria (FintechNGR) to promote artificial intelligence in fraud prevention and regulatory assurance across the financial sector.

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At a recent breakfast event themed “Technology for Trust”, Pastel introduced Sigma, an AI-powered compliance platform purpose-built with African regulatory data.

With Nigerian banks reporting over ₦52.26bn in fraud losses in 2024 alone, the solution arrives at a critical time.

Pastel CEO Abuzar Royesh highlighted Sigma’s real-time capabilities: from anti-money laundering detection to automated regulatory reporting.

“This isn’t a Western model retrofitted for Africa,” Royesh stated. “It’s designed for the continent’s unique compliance needs.”

Chief Revenue Officer Anthony Amodu stressed that outdated, manual systems are no longer effective, while FintechNGR’s Seun Folorunsho emphasized the global urgency: “Financial institutions globally now spend over $200bn annually on AI for compliance.”

Live demonstrations and expert panels underscored the importance of explainability, user experience, and collaboration among banks, fintechs, and regulators.

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This powerful partnership aims not just to modernize compliance, but to restore trust in Nigeria’s financial system.