The Senate Committee on Banking, Insurance and Other Financial Institutions has called on the Central Bank of Nigeria (CBN) to strengthen regulatory oversight of financial technology firms in order to curb rising cases of fraud within Nigeria’s banking system.
The committee also urged the apex bank to introduce stricter regulatory measures to tackle the growing threat of Ponzi schemes that have defrauded many Nigerians in recent years.
Chairman of the committee, Adetokunbo Abiru, made the call on Wednesday during an investigative hearing into the operations of Ponzi schemes in Nigeria, particularly the recent case involving Crypto Bullion Exchange.
The hearing was jointly organised by the Senate Committees on ICT and Cyber Security, Capital Market, and Anti-Corruption and Financial Crimes.
Abiru, who represents Lagos East Senatorial District, advocated legislation that would place fintech operations directly under the supervision of the CBN.
Call for Stronger Regulatory Framework
He noted that the Banks and Other Financial Institutions Act, which regulates Nigeria’s banking system, should be amended to accommodate technology-driven financial service providers.
“It is far more effective to strengthen the BOFIA framework, modernise CBN supervisory powers, and mandate robust coordination with agencies such as the Securities and Exchange Commission, Nigerian Communications Commission, National Information Technology Development Agency, Corporate Affairs Commission, Federal Competition and Consumer Protection Commission, the Office of the National Security Adviser and the Federal Ministry of Finance,” he said.
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According to him, the proposed amendment would empower the CBN to designate qualified fintech and digital financial institutions as important institutions, establish a national registry to improve transparency and beneficial ownership disclosure, strengthen risk-based supervision tailored to technology-driven financial services, and promote data sovereignty and systemic stability.
Abiru also said proposals to establish a new standalone regulatory agency for fintech supervision could create unnecessary duplication of roles.
He noted that creating a new agency would likely lead to bureaucratic overlap, higher administrative costs and fragmented regulatory authority in a sector that requires coordination among regulators.
“The question has arisen as to whether the creation of a new standalone regulatory agency would be a preferable pathway for supervising fintechs. However, after careful consideration, it is evident that establishing an entirely new agency would duplicate functions, create bureaucratic overlap, increase administrative costs, and fragment regulatory authority in a sector where coordination and coherence are essential,” he added.
Rapid Growth of Fintech in Nigeria
Nigeria’s fintech sector has grown rapidly over the past decade, driven by increased mobile phone penetration, wider adoption of digital payments and financial inclusion initiatives championed by the CBN.
The country is widely regarded as one of Africa’s leading fintech hubs, attracting billions of naira in investment and hosting several digital payment, lending and investment platforms.
However, the rapid expansion has also exposed regulatory gaps, particularly as some digital platforms operate in areas that cut across banking, capital markets and telecommunications regulation.
While the CBN regulates banks under the BOFIA 2020, fintech companies often operate under multiple regulatory frameworks, creating coordination challenges among relevant agencies.
Concerns Over Ponzi Schemes
Nigeria has in recent years witnessed a surge in Ponzi schemes and unregulated digital investment platforms promising unrealistic returns to investors.
Many of the schemes rely on social media promotion, cryptocurrency narratives and digital payment channels to attract victims.
The collapse of platforms such as the recent Crypto Bullion Exchange has renewed concerns about consumer protection, weak oversight and poor coordination among regulatory agencies.
Past experiences, including the MMM Global pyramid scheme that gained popularity in 2016, demonstrated the scale of financial losses Nigerians could suffer when fraudulent schemes thrive without timely regulatory intervention.
Despite repeated warnings from regulators such as the Securities and Exchange Commission and the CBN, enforcement efforts have often lagged behind the speed at which such platforms emerge.
Rafiyat Sadiq is a political, justice, and human rights reporter with Pinnacle Daily, known for fearless reporting and impactful storytelling. At Pinnacle Daily, she brings clarity and depth to issues shaping governance, democracy, and the protection of citizens’ rights.
