The Senate of Nigeria has urged a more robust regulatory framework to place the Central Bank of Nigeria (CBN) at the center of supervision for the country’s fast-growing fintech sector.
The lawmakers also called for stricter action to curb Ponzi schemes and fraudulent digital investment platforms.
Speaking at a public hearing, Senator Adetokunbo Abiru, Chairman of the Senate Committee on Banking, Insurance and Other Financial Institutions, proposed amendments to the Banks and Other Financial Institutions Act (BOFIA) 2020.
Key proposals include:
Explicitly bringing fintech companies under CBN supervision.
Designating qualifying fintechs and digital financial institutions as Systemically Important Institutions.
Creating a national registry to improve transparency and disclose beneficial ownership.
Implementing risk-based supervision tailored for technology-driven financial services.
The Senate raised concerns over the recent Crypto Bullion Exchange (CBEX) incident, which caused significant financial losses for Nigerians, including professionals, students, and retirees.
The lawmakers warned that unchecked Ponzi schemes undermine public trust in legitimate institutions, distort capital allocation, and increase money laundering risks.
The Senate recommended
tougher inter-agency collaboration to detect and shut down fraudulent schemes, strengthened laws and enforcement to protect investors and the broader financial system.
This initiative signals a push toward safeguarding Nigeria’s digital financial ecosystem while maintaining public confidence in fintech innovations.
