Nigeria’s financial technology industry may face tighter regulatory oversight as the Senate has passed a bill seeking to empower the Central Bank of Nigeria (CBN) to supervise major fintech companies and other non-bank financial institutions considered critical to the country’s financial system.
The proposed amendment to the Banks and Other Financial Institutions Act (BOFIA), 2020, seeks to give the apex bank authority to designate qualifying financial technology operators and other non-bank institutions as Systemically Important Institutions (SIIs).
The bill, SB. 959, was passed after clause-by-clause consideration at the Committee of the Whole during Tuesday’s plenary.
Titled A Bill for an Act to Amend the Banks and Other Financial Institutions Act, No. 5 of 2020, to Provide for the Designation, Registration and Enhanced Supervision of Systemically Important Institutions; and for Other Related Matters, the legislation was presented by the Chairman of the Senate Committee on Banking, Insurance and Other Financial Institutions, Senator Mukhail Adetokunbo Abiru.
The plenary was presided over by Senate President Godswill Akpabio.
Abiru sponsored the bill alongside other members of the Senate Committee on Banking, Insurance and Other Financial Institutions.
How the Proposed CBN Regulation Will Work
Under the proposed framework, the CBN would have the power to identify and designate non-bank financial institutions as systemically important based on factors such as their size, transaction volumes, customer base and level of connection with other players in the financial system.
This means major fintech operators whose activities could significantly affect financial stability may be subjected to stricter supervision by the apex bank.
The bill also proposes an official register of institutions designated as systemically important, alongside tougher compliance requirements covering corporate governance, cybersecurity, technology risks and operational resilience.
Other provisions include mandatory stress testing, data integrity assessments, enhanced regulatory reporting and supervisory access to relevant information and operational systems.
The proposed amendment further seeks to strengthen disclosure of beneficial ownership, improve transparency around ownership and control structures, and introduce enforcement measures and sanctions for institutions that breach regulatory requirements.
Why Senate Wants Stronger Fintech Regulation
The proposed legislation is aimed at addressing emerging risks in Nigeria’s financial services industry as technology-driven financial companies become increasingly influential.
Large fintech operators now serve substantial customer bases and process significant transaction volumes, creating stronger connections between digital financial services and traditional banking institutions.
The Senate committee said the proposed changes would provide a stronger legal framework for supervising institutions whose operations could have wider implications for the stability of the financial system.
According to the committee’s report, the bill received broad support from regulatory authorities, government agencies, financial institutions and professional bodies during a public hearing held on March 4, 2026.
The Central Bank of Nigeria supported the proposed reforms, particularly the need for stronger supervision of large non-bank financial institutions whose transaction volumes, customer numbers and operational connections could pose risks to financial stability.
FCCPC Seeks Clear Division of Regulatory Responsibilities
The Federal Competition and Consumer Protection Commission (FCCPC) also supported stronger oversight but called for clear coordination between regulators.
The commission stressed the need to distinguish prudential regulation from competition enforcement and consumer protection.
It urged the CBN and FCCPC to coordinate their responsibilities to prevent overlapping regulatory requirements while ensuring that the proposed framework protects consumers and supports fair competition.
Other institutions that supported the bill included the Nigeria Deposit Insurance Corporation (NDIC), Nigerian Communications Commission (NCC), Ministry of Finance Incorporated, Federal Ministry of Industry, Trade and Investment, Bank of Industry and Economic and Financial Crimes Commission (EFCC).
Several banks and other financial institutions also backed the proposed amendment.
The Senate committee said stakeholders generally supported measures to strengthen financial stability, encourage responsible digital innovation, improve regulatory coordination and protect users of financial services.
It added that consultations were conducted to ensure that the proposed legislation reflected the concerns and recommendations of relevant institutions and members of the public.
The public hearing was preceded by advertisements in print and electronic media inviting stakeholders and interested members of the public to submit memoranda.
If enacted, the amendment would expand the CBN’s statutory supervisory reach over qualifying fintech companies and other non-bank financial institutions, introducing additional compliance and risk-management obligations for operators designated as systemically important.
