Nigeria’s Senate has called for a stronger regulatory framework that would place the Central Bank of Nigeria (CBN) at the centre of supervising the country’s rapidly expanding financial technology sector, while also demanding tougher measures to combat the growing threat of Ponzi schemes.
The call was made on Wednesday during a one-day public hearing held at the National Assembly in Abuja. The session was led by Mukhail Adetokunbo Abiru, Chairman of the Senate Committee on Banking, Insurance and Other Financial Institutions.
The hearing examined the proposed amendment to the Banks and Other Financial Institutions Act (BOFIA) through the Banks and Other Financial Institutions Act (Amendment) Bill, 2025 (SB. 959), alongside an investigative session into the operations of Ponzi schemes in Nigeria. Particular attention was given to the recent Crypto Bullion Exchange (CBEX) incident, which reportedly caused significant financial losses for many Nigerians.
The joint session was organised by several Senate committees, including those on Banking, ICT and Cyber Security, Capital Market, and Anti-Corruption and Financial Crimes.
According to Senator Abiru, the proposed amendment aims to strengthen the legal framework established under BOFIA 2020 by providing a clear statutory basis for the designation, registration and supervision of Systemically Important Institutions, particularly technology-driven financial service providers.
He noted that Nigeria’s financial ecosystem has evolved significantly in recent years, with fintech companies processing large transaction volumes and handling sensitive financial data belonging to millions of citizens.
Over the past decade, fintech firms — including mobile money operators, digital lenders, payment platforms and settlement companies — have expanded rapidly, helping to deepen financial inclusion across the country. However, Abiru warned that regulatory structures have not kept pace with the sector’s growth and systemic importance.
Although the CBN already designates Systemically Important Financial Institutions, the current framework primarily focuses on traditional banks and does not adequately cover large non-bank digital platforms, leaving regulatory gaps.
The proposed amendment would empower the CBN to designate qualifying fintech firms and digital financial institutions as Systemically Important Institutions. It would also establish a national registry to improve transparency and beneficial ownership disclosure, strengthen risk-based supervision tailored to technology-driven services, and promote data sovereignty and systemic stability.
Abiru dismissed suggestions that Nigeria should create a separate regulatory agency for fintech supervision. According to him, establishing a new body would duplicate functions, create bureaucratic overlap, increase administrative costs and fragment regulatory authority in a sector where coordination is essential.
He stressed that fintech regulation is closely linked to core financial oversight responsibilities such as monetary policy, payment system supervision, Know-Your-Customer compliance, anti-money laundering enforcement and systemic risk monitoring — all of which already fall under the CBN’s mandate.
Beyond fintech oversight, the Senate also intensified its scrutiny of Ponzi schemes and fraudulent digital investment platforms, which Abiru described as a serious threat to financial stability and public confidence.
He warned that such schemes not only cause financial hardship for individuals but also undermine trust in legitimate institutions, distort capital allocation and expose the financial system to money laundering and illicit financial flows.
Stakeholders at the hearing included representatives from the Central Bank, the Economic and Financial Crimes Commission, the Nigerian Communications Commission, the Federal Competition and Consumer Protection Commission and the Nigerian Deposit Insurance Corporation, among others.
The Senate said it would review memoranda submitted by stakeholders before making its final recommendations on the proposed amendment and broader regulatory reforms.
