The Senate on Wednesday consolidated proposed legislation aimed at strengthening the regulatory oversight of the Central Bank of Nigeria (CBN) on financial technology (fintech) operations in the country.
The upper chamber also considered tougher legislative measures to curb Ponzi scheme fraud, following recent financial scams, including the reported N1.3 trillion allegedly lost by Nigerians to Crypto Bullion Exchange (CBEX) in April 2025.
These moves received broad support from stakeholders during a public hearing on the Banks and Other Financial Institutions Act (Amendment) Bill 2026 and a motion on an investigative hearing into the operations of Ponzi schemes in Nigeria.
The hearing was organised by the Senate Committees on Banking, ICT & Cybercrime, Capital Market, and Anti-Corruption and Financial Crimes.
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Speaking at the hearing, Chairman of the Senate Committee on Banking, Senator Adetokunbo Abiru (Lagos East), said the proposed amendment seeks to strengthen the regulatory framework guiding the CBN's oversight of the fintech sector.
According to him, the bill aims to amend the Banks and Other Financial Institutions Act (BOFIA) 2020 to provide a clear statutory framework for the designation, registration, and enhanced supervision of Systemically Important Institutions, particularly technology-enabled financial service providers.
"Over the past decade, Nigeria's financial ecosystem has evolved significantly. Fintechs -- mobile money operators, payment platforms, digital lenders, and settlement companies -- now serve millions of Nigerians, process vast transaction volumes, and hold sensitive financial data," Abiru said.
"While their growth has strengthened financial inclusion, the law has not kept pace with their scale and systemic relevance. This creates a regulatory gap with implications for financial stability, data sovereignty, consumer protection, and national security."
He explained that the proposed amendment would empower the CBN to designate qualifying fintechs and digital financial institutions as Systemically Important Institutions; establish a national registry to enhance transparency and beneficial ownership disclosure; strengthen risk-based supervision tailored to technology-driven financial services; and promote data sovereignty and systemic stability.
In separate submissions, representatives of the CBN, including deputy governor, Financial System Stability, Philip Ikeazor, as well as the immediate past President of the Chartered Institute of Bankers of Nigeria (CIBN), Bayo Olugbemi, and representatives of the Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL) and the Nigeria Deposit Insurance Corporation (NDIC), expressed support for the proposed amendment.
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Stakeholders at the hearing also backed the Senate's move to introduce stricter measures against Ponzi scheme operations in the country, calling for enhanced enforcement, investor education, and stronger inter-agency collaboration to prevent further financial losses to fraudulent schemes.
