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Nigerian Senate backs stronger fintech regulation under Central Bank of Nigeria.
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Lawmakers say creating a new fintech agency would duplicate roles and increase bureaucracy.
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Senate also pushes stricter action against Ponzi schemes following the Crypto Bullion Exchange scandal.
The Nigerian Senate has rejected proposals to establish a separate regulatory body for Nigeria’s financial technology sector, insisting that the Central Bank of Nigeria should retain full oversight of the fast-growing industry.
Chairman of the Senate Committee on Banking, Insurance and Other Financial Institutions, Mukhail Adetokunbo Abiru, disclosed this during a public hearing at the National Assembly in Abuja on the Banks and Other Financial Institutions Act (Amendment) Bill, 2025.
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According to Abiru, establishing a new standalone fintech regulator would create unnecessary bureaucratic overlap, increase administrative costs and weaken coordination in a sector closely tied to monetary policy, payments supervision and anti-money laundering enforcement — functions already handled by the apex bank.
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He explained that the amendment to BOFIA 2020 aims to strengthen the legal framework governing digital financial services and allow the CBN to designate large fintech firms as Systemically Important Institutions due to their massive transaction volumes and access to sensitive financial data belonging to millions of Nigerians.
Under the proposal, the CBN would maintain a national registry of such institutions, enforce risk-based supervision tailored to technology-driven services and promote data sovereignty and financial stability.
The move is also intended to close regulatory gaps created by the rapid expansion of digital lenders, payment platforms and mobile money operators over the past decade.
Beyond fintech regulation, the Senate also intensified its probe into Ponzi schemes and fraudulent investment platforms operating across the country. Abiru warned that the rise of such schemes poses a major threat to financial stability and public trust, citing the recent Crypto Bullion Exchange incident which reportedly caused heavy losses for many Nigerians.
The Senate said it would review submissions from stakeholders including the Nigeria Deposit Insurance Corporation, Economic and Financial Crimes Commission, Nigerian Communications Commission and the Federal Competition and Consumer Protection Commission before making final recommendations on the proposed amendment.
