The Senate has called for a stronger regulatory framework to position the Central Bank of Nigeria (CBN) at the centre of coordinating oversight for Nigeria’s rapidly expanding fintech sector, while also urging stricter measures to curb the spread of Ponzi schemes across the country.

The call was made on Tuesday by the Chairman of the Senate Committee on Banking, Insurance and Other Financial Institutions, Senator Adetokunbo Abiru (Lagos East), during a one-day public hearing at the National Assembly.

The joint hearing, convened by the Senate Committees on Banking; ICT and Cyber Security; Capital Market; and Anti-Corruption and Financial Crimes, examined ways to strengthen Nigeria’s financial regulatory architecture amid rapid digital transformation and rising cases of financial fraud.

The investigative session also examined the operations of Ponzi schemes in Nigeria, with particular reference to the recent Crypto Bullion Exchange (CBEX) incident.

In his remarks, Abiru advocated amendments to the Banks and Other Financial Institutions Act (BOFIA) 2020 to explicitly bring fintech companies under the supervisory authority of the CBN.

He said the proposed legislation would create a clear statutory framework for the designation, registration and enhanced supervision of Systemically Important Institutions, particularly technology-driven financial service providers.

According to the lawmaker, the 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; and strengthen risk-based supervision tailored to technology-enabled services.

Beyond fintech oversight, the Senate intensified scrutiny of fraudulent digital investment platforms and Ponzi schemes, describing their proliferation as a major threat to financial stability and public confidence.

Abiru cited the CBEX incident, which reportedly led to significant financial losses for many Nigerians, including young professionals, retirees, traders, small business owners and students.

He warned that such schemes not only cause individual hardship but also erode trust in legitimate financial institutions, distort capital allocation, damage Nigeria’s financial reputation and increase the risks of money laundering and illicit financial flows.

Following investigations into regulatory gaps, institutional coordination challenges and the adequacy of existing laws, the Senate proposed tougher measures to curb fraudulent schemes and improve inter-agency collaboration. (Channels TV)

• FILE PHOTO: Chairman of the Senate Committee on Banking, Insurance and Other Financial Institutions, Senator Adetokunbo Abiru

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