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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