Senate Proposes Stricter Measures Against Ponzi Schemes

The Nigerian Senate, under the leadership of Mukhail Adetokunbo Abiru, Chairman of the Senate Committee on Banking, Insurance, and Financial Institutions, is pushing for stricter measures to prevent Ponzi scheme fraud. This initiative comes during a public hearing on the Banking and Financial Institutions Act Amendment Bill 2025 (SB 959), which aims to address the operations of Ponzi schemes in Nigeria, particularly referencing the recent CBEX incident that reportedly caused significant financial losses to Nigerians, including young professionals and small business owners.

The proposed amendments seek to empower the Central Bank of Nigeria (CBN) to establish a regulatory framework for fintech companies, ensuring better supervision and consumer protection. The Senate is focused on strengthening Nigeria's financial regulatory architecture amid the rapid digital transformation and the rise of financial fraud.

Abiru emphasized the need for a robust legal framework to address the realities of a data-driven financial ecosystem, which has evolved significantly over the past decade.