The senate has commenced a public hearing on proposed amendments to the Banks and Other Financial Institutions Act (BOFIA) of 2020 and an investigation into the proliferation of ponzi schemes in Nigeria.
Senate President Godswill Akpabio declared the hearing open on Tuesday at the national assembly.
Akpabio was represented at the session by Opeyemi Bamidele, senate leader.
The hearing focused on ‘A Bill for an Act to amend the Banks and Other Financial Institutions Act, No. 5 of 2020 (SB959) and the Motion on investigative hearing into the operations of Ponzi schemes in Nigeria with particular reference to the recent Crypto Bullion Exchange (CBEX) incident’.
The engagement was jointly organised by the senate committees on banking, insurance and other financial institutions on ICT and cyber security, capital market, and anti-corruption and financial crimes.
Akpabio said the initiative reflects the senate’s resolve to safeguard financial stability while supporting responsible innovation in Nigeria’s digital economy.
He said Nigeria’s financial landscape has undergone a rapid transformation driven by digital innovation, fintech expansion, and cryptocurrency-related activities.
The lawmaker said the proposed amendment will strengthen the supervisory powers of the Central Bank of Nigeria (CBN).
He said the bill would provide a clearer statutory framework for the designation and oversight of systemically important institutions, including technology-enabled financial service providers.
“Enhanced supervision is not a constraint on growth; it is a safeguard for sustainable growth,” Akpabio said.
CREATION OF SEPARATE FINTECH REGULATORY COMMISSION RUKLED OUT
The lawmaker said while some stakeholders had suggested the creation of a standalone fintech regulatory commission, the senate believes fintech oversight is closely tied to responsibilities already handled by the CBN.
He said creating a separate regulator could fragment oversight and lead to duplication of responsibilities.
Akpabio said cryptocurrency investment activities, including licensing of exchanges, fall under the Securities and Exchange Commission (SEC), noting that transaction monitoring and financial system stability concerns remain within the CBN’s mandate.
The senate leader warned that the growing number of ponzi schemes and fraudulent digital investment platforms poses serious risks to public confidence in Nigeria’s financial system.
He described the collapse of Crypto Bridge Exchange (CBEX) as a reminder of the vulnerability of Nigerians to schemes promising unrealistic returns.
“Ponzi schemes exploit economic hardship and limited financial literacy,” he said.
“They undermine trust in legitimate institutions and inflict severe financial and emotional harm.”
Akpabio said the senate will examine regulatory gaps, enforcement challenges, and whether stronger penalties are required to deter financial fraud.
“The financial system operates fundamentally on trust,” he said.
“Strengthening oversight of systemically important institutions and addressing fraudulent schemes are essential to preserving stability and restoring confidence in Nigeria’s financial system.”
Mukhail Abiru, chairman of the senate committee on banking, insurance and other financial institutions, said the amendment would empower the CBN to designate qualifying fintech firms and digital financial institutions as systemically important.
He said the bill would also establish a national registry to enhance transparency and strengthen risk-based supervision tailored to technology-driven financial services.
Philip Ikeazor, deputy governor of the CBN in charge of financial system stability, expressed support for the amendment.
He said several fintech firms now process transaction volumes comparable to mid-sized banks and therefore require closer supervision.
Orekia Opemi-Yusuf, director of payment systems supervision at the CBN, said duplicating regulatory structures would not align with global best practices.
She warned that such duplication could hinder the growth of Nigerian fintech firms already expanding beyond the country’s borders.
Isa Amadu, representing the Bank of Industry, urged lawmakers to establish clearer thresholds for designating systemically important institutions to prevent regulatory overreach.
Ondaje Ijagwu, representing the Federal Competition and Consumer Protection Commission (FCCPC), supported stronger prudential supervision by the CBN.
He cautioned against blurring the lines between prudential regulation and competition or consumer protection mandates.
Dein Whyte, representing the Economic and Financial Crimes Commission (EFCC), said Nigerians continue to invest in fraudulent schemes despite recent scandals.
He said that N1.3 trillion involving 1,200 victims was linked to the CBEX fraud.
Whyte added that the commission has seized substantial assets from the operators and is pursuing their forfeiture to the federal government.
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