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The Nigerian Senate has rejected a proposal to establish a separate regulatory body for the country’s rapidly growing financial technology (fintech) sector, choosing instead to strengthen the oversight powers of the Central Bank of Nigeria (CBN).
The decision was reached during a public hearing at the National Assembly on the proposed amendment to the Banks and Other Financial Institutions Act (BOFIA) 2020, aimed at improving the regulation of digital financial services.
Chairman of the Senate Committee on Banking, Insurance and Other Financial Institutions, Senator Adetokunbo Abiru, explained that rather than creating a new agency, the amendment seeks to empower the CBN to supervise fintech firms more effectively and coordinate with other regulatory bodies.
According to him, fintech companies now process large volumes of transactions and serve millions of Nigerians, making it necessary to place them under a stronger regulatory framework to safeguard financial stability.
The Senate noted that establishing a new fintech regulatory commission could lead to duplication of responsibilities, increased compliance costs for operators, and regulatory uncertainty in the sector.
Lawmakers also expressed concern over the rising number of fraudulent digital investment schemes and Ponzi platforms, stressing the need for stricter oversight and improved collaboration among financial regulators.
The proposed amendment is expected to give the CBN clearer authority to designate major fintech firms as systemically important institutions and subject them to enhanced supervision to protect Nigeria’s financial system.
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Oyetoke Adedayo Ebenezer
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