Senate Empowers CBN for Fintech Oversight Amid Ponzi Concerns

On Wednesday, the Nigerian Senate rejected the proposal for a new fintech regulatory body, deciding instead to grant full oversight to the Central Bank of Nigeria (CBN). This decision was made during a public hearing focused on the Bank and Financial Institutions Act Amendment Bill 2025 (SB 959), which aims to address the growing prevalence of Ponzi schemes in the country.

Mukhail Adetokunbo Abiru, Chairman of the Senate Committee on Banking, Insurance and Financial Institutions, emphasized the need for a robust regulatory framework to curb these schemes and protect the financial ecosystem. The proposed amendments will empower the CBN to design a qualified fintech digital financial institution system and establish a national registry to enhance transparency and ownership disclosure.

The Senate's decision reflects concerns that creating a new regulatory agency could lead to bureaucratic overlap and increased administrative costs. The CBN's current framework is seen as insufficient for addressing the rapid growth of non-bank digital platforms, necessitating a more integrated approach to regulation.