Nigeria’s Senate has rejected calls to establish a new regulatory body for the country’s rapidly expanding financial technology sector, instead backing a plan to strengthen the supervisory powers of the Central Bank of Nigeria.
Lawmakers said placing fintech oversight within the existing framework of the apex bank would provide stronger coordination and avoid regulatory duplication in a sector closely tied to the nation’s monetary and financial systems.
The decision was announced on Wednesday during a one-day public hearing at the National Assembly in Abuja, organized by the Senate Committee on Banking, Insurance and Other Financial Institutions.
Chairman of the committee, Mukhail Adetokunbo Abiru, said the ongoing review of the Banks and Other Financial Institutions Act amendment bill aims to update Nigeria’s legal framework in response to the growing influence of fintech companies.
According to him, the amendment will create a clearer statutory basis for the designation, registration and supervision of Systemically Important Institutions, particularly large technology-driven financial service providers.
Fintech firms — including digital lenders, payment platforms, mobile money operators and settlement companies — have grown rapidly over the past decade, processing huge transaction volumes and handling sensitive financial data belonging to millions of Nigerians.
However, Abiru noted that existing regulations mainly focus on traditional banks and do not fully capture the systemic importance of large non-bank digital financial platforms.
Abiru said lawmakers considered proposals to create a standalone fintech regulatory body but concluded that such a move would complicate oversight.
“Establishing an entirely new agency would duplicate functions, create bureaucratic overlap, increase administrative costs and fragment regulatory authority in a sector where coordination is essential,” he said.
He explained that fintech regulation is closely linked to monetary policy, payment systems oversight, anti-money laundering compliance and financial stability monitoring — responsibilities already handled by the Central Bank.
Under the proposed amendment, the apex bank would be empowered to:
- Designate large fintech companies as Systemically Important Institutions
- Create a national registry to improve transparency and beneficial ownership disclosure
- Introduce risk-based supervision tailored to digital financial services
- Strengthen safeguards for data sovereignty and systemic stability
The framework would also require stronger coordination between the Central Bank and other key regulators, including the Securities and Exchange Commission, Nigerian Communications Commission, National Information Technology Development Agency and Federal Competition and Consumer Protection Commission.
Beyond fintech regulation, the hearing also focused on the growing threat posed by fraudulent digital investment platforms and Ponzi schemes.
Abiru warned that such schemes are increasingly damaging public confidence in Nigeria’s financial system.
He cited the recent collapse of the Crypto Bullion Exchange as an example, noting that many Nigerians — including traders, retirees, students and small business owners — reportedly suffered heavy financial losses.
According to him, Ponzi schemes not only create personal hardship but also undermine trust in legitimate financial institutions, distort capital allocation and increase the risk of illicit financial flows.
Representatives from several regulatory and enforcement agencies made submissions at the hearing, including the Nigerian Deposit Insurance Corporation, Economic and Financial Crimes Commission, Chartered Institute of Bankers of Nigeria and the Ministry of Finance.
The Senate said it will review the memoranda submitted by stakeholders before making final recommendations on the proposed amendment and broader regulatory reforms aimed at safeguarding Nigeria’s fast-growing digital financial ecosystem.
