Nigeria: Amended NDIC and BOFIA Acts Strengthen Financial Sector Stability, Says Senator Abiru

The recent amendments to the Nigerian Deposit Insurance Corporation (NDIC) Act and the Banks and Other Financial Institutions Act (BOFIA) are setting the stage for a more stable financial sector, according to the Senate. Chairman of the Senate Committee on Banking, Insurance, and Other Financial Institutions, Senator Adetokunbo Abiru, highlighted the positive impact of these legislative updates during the NDIC’s annual retreat in Lagos. This year’s event, themed “Building Resilient Financial Systems through Effective Legislative Intervention,” brought together stakeholders to discuss pressing challenges and opportunities in Nigeria’s financial sector.

Senator Abiru noted that the Nigerian banking industry is facing emerging risks, including those related to cybersecurity and the rapid growth of fintech and digital financial services. To keep up with these developments, he emphasized the importance of adapting legislative frameworks, stating, “We must ensure that regulators like the Central Bank of Nigeria (CBN) and the NDIC are equipped to effectively oversee the financial sector while also fostering innovation and healthy competition.”

Abiru also underscored the increasing cyber threats tied to digital banking and financial technologies, warning that cybersecurity incidents in the banking sector underscore the need for stronger regulatory oversight and increased investment in cyber defenses. “Legislative interventions must focus on establishing robust cybersecurity frameworks that protect not only financial institutions but also the sensitive data of millions of Nigerians,” he added.

Building a resilient financial system, Abiru explained, requires a collective approach from all stakeholders, including banking, insurance, fintech companies, depositors, and the wider public. He remarked, “Collaborative partnerships are key to ensuring that our financial systems remain both resilient and inclusive.”

In his address, Bello Hassan, Managing Director and Chief Executive of the NDIC, reiterated the importance of working closely with the Senate to address risks associated with technological advances, globalization, and consolidation in the financial sector. “The financial services sector has experienced significant transformation driven by technology, globalization, and sector consolidation,” Hassan noted. “While these developments present growth opportunities, they also introduce additional risks and complexities that must be managed.”

Hassan emphasized the need for stakeholders, particularly those with oversight responsibilities, to collaborate even more closely. He concluded that legislative support is essential for designing a legal framework that balances protection for consumers with encouragement for financial innovation.