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The Nigerian Senate has called for a more robust regulatory framework that positions the Central Bank of Nigeria (CBN) at the centre of oversight for the country’s rapidly expanding fintech sector, while also advocating tougher action against the growing prevalence of Ponzi schemes.
This position was highlighted by Mukhail Adetokunbo Abiru, Chairman of the Senate Committee on Banking, Insurance and Other Financial Institutions, during a one-day public hearing at the National Assembly of Nigeria in Abuja.
The hearing focused on 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), as well as an investigative session examining the activities of Ponzi schemes in Nigeria, particularly the recent Crypto Bullion Exchange (CBEX) incident.
Convened jointly by the Senate Committees on Banking, ICT and Cyber Security, Capital Market, and Anti-Corruption and Financial Crimes, the session aimed to strengthen Nigeria’s financial regulatory architecture in response to rapid digital transformation and rising financial fraud.
Speaking at the event, Senator Abiru emphasised the need to strengthen the existing legal framework under BOFIA and clearly place fintech companies under the supervisory authority of the CBN.
According to him, the amendment bill seeks to establish a statutory framework for the designation, registration, and enhanced supervision of Systemically Important Institutions, including technology-driven financial service providers.
Nigeria’s financial ecosystem has evolved significantly over the past decade, with fintech companies such as mobile money operators, payment platforms, digital lenders, and settlement providers now serving millions of Nigerians and processing high volumes of financial transactions. While this growth has accelerated financial inclusion, Abiru noted that the regulatory framework has not fully kept pace with the sector’s scale and systemic importance.
Currently, the CBN designates Systemically Important Financial Institutions, but the framework largely focuses on banks and does not fully address the risks posed by large, data-driven non-bank financial platforms. This gap, he said, has implications for financial stability, consumer protection, data sovereignty, and national security.
The proposed amendment aims to empower the CBN to designate qualifying fintechs and digital financial institutions as Systemically Important Institutions, establish a national registry to improve transparency and beneficial ownership disclosure, strengthen risk-based supervision tailored to technology-driven services, and enhance systemic stability.
Abiru dismissed suggestions that a separate regulatory body should be created to oversee fintech companies, arguing that doing so could lead to duplication of responsibilities and regulatory fragmentation.
He noted that fintech oversight is closely linked to areas already under the CBN’s jurisdiction, including monetary policy, payment systems oversight, prudential supervision, Know-Your-Customer (KYC) compliance, Anti-Money Laundering (AML) enforcement, and systemic risk monitoring.
Instead, he recommended strengthening BOFIA and modernising the CBN’s supervisory powers while ensuring strong coordination with other regulatory agencies such as the Securities and Exchange Commission, Nigerian Communications Commission, National Information Technology Development Agency, Corporate Affairs Commission, Federal Competition and Consumer Protection Commission, the Office of the National Security Adviser, and the Federal Ministry of Finance.
Beyond fintech regulation, the Senate also raised concerns over the increasing activities of Ponzi schemes and fraudulent digital investment platforms. Senator Abiru described their proliferation as a serious threat to financial stability and public confidence.
He referenced the CBEX case, which reportedly led to financial losses for many Nigerians, including professionals, retirees, traders, small business owners, and students. According to him, such schemes not only cause individual hardship but also undermine trust in legitimate financial institutions, distort capital allocation, and expose the financial system to risks such as money laundering and illicit financial flows.
Following its investigation into regulatory gaps and the effectiveness of existing laws, the Senate proposed stricter measures to curb fraudulent investment platforms and strengthen enforcement mechanisms.
Stakeholders who made submissions at the hearing included representatives from the Central Bank of Nigeria, Nigeria Deposit Insurance Corporation, Economic and Financial Crimes Commission, Nigerian Communications Commission, Federal Competition and Consumer Protection Commission, Ministry of Finance Incorporated, and the Chartered Institute of Bankers of Nigeria, among others.
The Senate noted that strengthening regulatory coordination and closing legislative gaps will be essential to safeguarding Nigeria’s financial system while supporting the continued growth of the fintech ecosystem.
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