Nigeria Senate Gives CBN Expanded Authority Over Fintech, Rejects Separate Regulator

Nigeria’s Senate voted to expand the Central Bank of Nigeria’s (CBN) regulatory authority over financial technology firms, rejecting proposals to establish a standalone regulator for the sector. The decision followed a one-day public hearing on Wednesday on proposed amendments to the Banks and Other Financial Institutions Act (BOFIA), a key law governing financial sector oversight.
Lawmakers said the amendments aim to tighten supervision of a rapidly growing fintech industry that now processes large volumes of transactions and serves millions of Nigerians. The Senate’s action reflects a preference for strengthening existing institutions rather than creating new bureaucracies.
The hearing, held at the National Assembly in Abuja, was convened jointly by the Senate Committees on Banking, Insurance and Other Financial Institutions; Information and Communication Technology and Cyber Security; Capital Markets; and Anti Corruption and Financial Crimes. The session underscored the urgency of updating regulatory structures as digital financial services expand in scale and complexity.
Senator Tokunbo Abiru, Chairman of the Senate Committee on Banking, Insurance and Other Financial Institutions, said the amendments are designed to close regulatory gaps as non bank digital financial service providers grow in systemic importance. “Fintech operators including digital lenders, mobile money services, payment gateways, and settlement platforms now perform functions that affect systemic stability,” Abiru said. “The existing legal framework was designed for traditional banks and does not adequately account for these new institutional forms.”
Under the bill, the CBN would be empowered to designate eligible fintech and digital financial institutions as “Systemically Important Institutions,” subjecting them to higher standards of risk-based supervision. The legislation also proposes a national fintech registry to increase transparency around beneficial ownership and strengthen compliance with anti-money-laundering, data governance, and consumer protection requirements.
Calls for a separate fintech regulator were rejected. Abiru argued that creating a new agency would duplicate functions, increase costs, and fragment authority. He said oversight of fintech operations is closely tied to monetary policy, payments regulation, prudential supervision, KYC compliance, anti-money-laundering efforts, and systemic risk monitoring—all functions already under the CBN. The amendments also formalize coordination between the CBN and agencies such as 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 Ministry of Finance.
Senate Leader Opeyemi Bamidele, representing Senate President Godswill Akpabio, said the engagement reflects the legislature’s mandate to safeguard Nigeria’s financial system. “Our financial system mobilizes savings, channels credit, facilitates transactions, and supports enterprise,” he said. “Regulation should not block innovation. It should ensure that digital services operate within legal frameworks that guarantee consumer protection, cybersecurity, operational resilience, and transparency.”
The hearing also examined fraudulent investment schemes, including the collapse of the Crypto Bullion Exchange (CBEX). Senators noted that such schemes harm investor confidence, distort capital flows, and increase exposure to illicit financial activity. The investigative component of the hearing will assess regulatory gaps, inter-agency coordination, and the adequacy of current statutes to address digital and cross-border financial crimes.
Agencies submitting memoranda included the Nigeria Deposit Insurance Corporation, the Economic and Financial Crimes Commission, Nigerian Communications Commission, Federal Competition and Consumer Protection Commission, Ministry of Finance Incorporated, the Chartered Institute of Bankers of Nigeria, and representatives of the CBN.
At the conclusion of the proceedings, the Senate reaffirmed its commitment to a coordinated regulatory model anchored by the CBN, aiming to protect consumers, support fintech innovation, and preserve systemic stability. The next step involves legislative debate and possible presidential assent to the BOFIA amendments, which could reshape digital financial services regulation in Africa’s largest economy.