The Senate has called for a strengthened regulatory framework that positions the Central Bank of Nigeria (CBN) at the centre of oversight of the country’s fast-growing fintech sector.
The recommendation was made by Chairman of the Senate Committee on Banking, Insurance, and Other Financial Institutions, Mr Adetokunbo Abiru, during a one-day public hearing at the National Assembly complex on Wednesday.
The event focused on the proposed amendment to the Banks and Other Financial Institutions Act (BOFIA) 2020 (SB. 959) and included an investigative session into fraudulent investment platforms, notably the recent Crypto Bullion Exchange (CBEX) incident.
Mr Abiru, who is a former Group Managing Director of Polaris Bank and Executive Director at First Bank Nigeria, emphasised that fintechs, including mobile money operators, digital lenders, payment platforms, and settlement companies, have become systemically important to Nigeria’s financial ecosystem.
While their growth has expanded financial inclusion, existing laws, he said, do not fully address the scale, data sensitivity, and systemic impact of these technology-driven institutions.
“The question has arisen as to whether a new standalone regulatory agency would be preferable for supervising fintechs,” Mr Abiru said.
“However, creating a separate agency would duplicate functions, fragment oversight, and increase bureaucratic costs. It is far more effective to strengthen the BOFIA framework, modernise CBN supervisory powers, and mandate coordination with key agencies such as the Securities and Exchange Commission, Nigerian Communications Commission, Corporate Affairs Commission, Federal Competition and Consumer Protection Commission, and the Office of the National Security Adviser,” he added.
The lawmaker proposed that the amendment should explicitly empower the CBN to designate qualifying fintechs as Systemically Important Institutions, establish a national registry for transparency and beneficial ownership disclosure, and strengthen risk-based supervision tailored to technology-driven financial services.
Beyond fintech regulation, the Senate intensified scrutiny on Ponzi schemes and fraudulent investment platforms.
Mr Abiru described the rising prevalence of such schemes as a threat to financial stability and public trust, citing the CBEX debacle, which reportedly caused severe financial losses to individuals across Nigeria, including professionals, traders, students, and retirees.