Senate Approves Bill for Enhanced Fintech Regulation

On November 10, the Nigerian Senate passed a bill aimed at strengthening regulatory oversight of the financial technology sector. This legislation amends the Banks and Other Financial Institutions Act (BOFIA) to empower the Central Bank of Nigeria (CBN) to designate and regulate systemically important fintech companies and non-bank financial institutions.

The bill, presented by Senator Mukhail Adetokunbo Abiru (Lagos East) during a plenary session presided over by Senate President Godswill Akpabio (Akwa Ibom North), seeks to address vulnerabilities in Nigeria’s financial services industry. It includes provisions for stricter corporate governance, cybersecurity safeguards, and operational resilience.

The CBN would be authorized to identify qualifying institutions as Systemically Important Institutions (SIIs), subjecting them to enhanced supervision. The legislation also establishes criteria for designation and includes measures for stress testing, data-integrity assessments, and regulatory reporting.

It received broad support from regulatory authorities and financial institutions during a public hearing.