By Nathaniel Zaccheaus, Abuja
The Senate on Wednesday rejected proposals to establish a standalone regulatory agency for Nigeria’s rapidly expanding financial technology (FinTech) sector, opting instead to strengthen the supervisory powers of the Central Bank of Nigeria (CBN) and tighten oversight to curb the growing threat of Ponzi schemes.
The position emerged during a one-day public hearing at the National Assembly on the Banks and Other Financial Institutions Act (Amendment) Bill, 2025 (SB. 959), as well as an investigative session into the proliferation of fraudulent investment platforms, with particular focus on the recent Crypto Bullion Exchange (CBEX) case.
The hearing was jointly organised by the Senate Committees on Banking, Insurance and Other Financial Institutions; ICT and Cyber Security; Capital Market; and Anti-Corruption and Financial Crimes.
Chairman of the Senate Committee on Banking, Insurance and Other Financial Institutions, Senator Mukhail Adetokunbo Abiru, said the amendment bill seeks to close existing regulatory gaps by bringing technology-driven financial service providers under a more robust legal framework supervised by the CBN.
According to him, the rapid expansion of digital financial services requires stronger oversight to safeguard financial stability and consumer protection.
“FinTech companies, including mobile money operators, digital lenders, payment platforms and settlement firms, now process enormous transaction volumes and serve millions of Nigerians,” Abiru said.
“While their growth has significantly deepened financial inclusion, the existing legal framework has not kept pace with their scale, complexity and systemic importance.”
He noted that the current structure for designating Systemically Important Financial Institutions is largely bank-focused and does not adequately capture large non-bank digital platforms.
“This regulatory gap poses risks to financial stability, consumer protection, data sovereignty and even national security,” he added.
Abiru explained that the proposed amendment would empower the CBN to designate qualifying FinTech firms as Systemically Important Institutions, establish a national registry to improve transparency and facilitate beneficial ownership disclosure, and strengthen risk-based supervision tailored to digital financial services.
The lawmaker firmly dismissed calls for a separate FinTech regulatory agency, arguing that such a move would create unnecessary bureaucratic overlap.
“Establishing a new agency would duplicate functions, create bureaucratic overlap, increase administrative costs and fragment regulatory authority in a sector where coordination and coherence are essential,” Abiru said.
He maintained that FinTech oversight is closely tied to monetary policy, payment regulation, prudential supervision, Know-Your-Customer requirements and anti-money laundering compliance—core responsibilities that already fall under the CBN.
Instead of creating a new regulator, Abiru advocated stronger coordination between the CBN and other relevant agencies, including the Securities and Exchange Commission, Nigerian Communications Commission, National Information Technology Development Agency, Corporate Affairs Commission, Federal Competition and Consumer Protection Commission, the Office of the National Security Adviser and the Federal Ministry of Finance.
Representing Senate President Godswill Akpabio, Senate Leader Opeyemi Bamidele said the engagement was part of the Senate’s constitutional duty to protect the stability and credibility of Nigeria’s financial system.
“The financial system is the backbone of the economy. It mobilises savings, allocates credit, facilitates payments and supports entrepreneurship,” Bamidele said.
“Effective regulation is not a constraint on innovation but a safeguard for sustainable growth.”
He stressed that digital innovation must operate within clear legal boundaries that guarantee consumer protection, cybersecurity and operational resilience.
The Senate also expressed deep concern over the growing activities of Ponzi schemes and fraudulent digital investment platforms, describing them as a serious threat to investor confidence.
Lawmakers cited the CBEX-linked collapse as a reminder of the devastating consequences of schemes promising unrealistic financial returns.
Reports presented during the hearing indicated that many Nigerians—including young professionals, retirees, traders, students and small business owners—suffered significant financial losses.
Bamidele said the Senate’s investigation would examine possible regulatory and enforcement failures and assess whether existing laws adequately address digital and cross-border financial fraud.
“Regulation must be proactive rather than reactive,” he said, adding that public financial literacy must complement enforcement and legislative reforms.
Stakeholders at the hearing included representatives of the CBN, the Nigerian Deposit Insurance Corporation, the Economic and Financial Crimes Commission, the Nigerian Communications Commission, the Federal Competition and Consumer Protection Commission, the Ministry of Finance Incorporated, and the Chartered Institute of Bankers of Nigeria.
The Senate reiterated its commitment to strengthening Nigeria’s financial regulatory framework, protecting citizens from financial exploitation and ensuring that innovation in the FinTech sector thrives under a coordinated regulatory system led by the CBN.
