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Proposed regulation seeks harder oversight of monetary expertise operators, strengthens cybersecurity and threat administration
Sunday Aborisade in Abuja
The Senate on Tuesday, handed for third studying, a invoice meant to strengthen the regulatory oversight of Nigeria’s quickly increasing monetary expertise sector.
The proposed modification to the Banks and Other Financial Institutions Act (BOFIA) seeks to empower the Central Bank of Nigeria (CBN) to designate and regulate systemically essential fintech corporations and different non-bank monetary establishments.
The proposed laws is designed to carry monetary establishments whose measurement, transaction volumes, buyer base and operational interconnectedness might pose dangers to the nation’s monetary stability underneath enhanced regulatory supervision.
The initiative, which seeks to amend the Banks and Other Financial Institutions Act, 2020, additionally supplies for stricter company governance requirements, cybersecurity safeguards, technology-risk administration, operational resilience and larger transparency within the possession buildings of designated establishments.
The Chairman of the Senate Committee on Banking, Insurance and Other Financial Institutions, Senator Mukhail Adetokunbo Abiru, introduced the committee’s report on the invoice throughout plenary presided over by Senate President Godswill Akpabio.
The invoice, SB. 959, is 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.
Abiru, who represents Lagos East Senatorial District, sponsored the laws alongside members of the Senate Committee on Banking, Insurance and Other Financial Institutions.
The proposed modification seeks to handle rising vulnerabilities in Nigeria’s monetary providers trade, notably the rising affect of enormous technology-driven monetary service suppliers whose operations have change into more and more interconnected with the standard banking system.
Under the proposed framework, the CBN can be empowered to determine and designate qualifying non-bank monetary establishments as Systemically Important Institutions (SIIs), subjecting them to enhanced prudential supervision.
The proposed laws additionally seeks to set up clear standards and regulatory procedures for figuring out which establishments qualify for the designation.
Beyond standard monetary regulation, the invoice seeks to strengthen the capability of the CBN to monitor dangers arising from digital monetary providers, technological disruptions and operational failures that might have wider implications for the monetary system.
Among its key provisions are stress testing, data-integrity assessments, enhanced regulatory reporting and supervisory entry to related info and operational techniques of designated establishments.
It additionally seeks to strengthen useful possession disclosure and regulatory oversight of possession and management buildings, whereas offering enforcement mechanisms and sanctions for establishments that violate relevant regulatory necessities.
The committee’s report disclosed that the proposed laws acquired broad help from related regulatory authorities, authorities companies, monetary establishments {and professional} our bodies throughout a public listening to performed on March 4, 2026.
The CBN supported the proposed strengthening of the statutory framework for supervising systemically essential non-bank monetary establishments.
The apex financial institution particularly highlighted the necessity for efficient, risk-based supervision of enormous fintech operators, noting that their transaction volumes, buyer bases and operational interconnectedness might have vital implications for monetary stability.
The Federal Competition and Consumer Protection Commission (FCCPC) additionally supported stronger oversight of systemically essential monetary service suppliers however emphasised the necessity to keep a transparent distinction between prudential regulation, competitors enforcement and client safety.
The fee urged acceptable coordination between the CBN and the FCCPC to forestall duplication of regulatory duties and be sure that the proposed framework promotes honest competitors whereas defending customers.
Other establishments that supported the invoice 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 different monetary establishments additionally endorsed the proposed modification.
According to the committee, the submissions acquired from stakeholders usually supported the necessity to strengthen monetary stability, encourage accountable digital innovation, enhance regulatory coordination, promote operational compliance and shield customers of monetary providers.
The committee defined that it had adopted a stakeholder-inclusive legislative strategy to be sure that the proposed modification mirrored the issues and suggestions of related establishments and members of the general public.
It stated the general public listening to was preceded by ads in print and digital media inviting memoranda from stakeholders and different members of the general public.
The public listening to was declared open on behalf of the President of the Senate by the Senate Chief Whip, Senator Mohammed Tahir Munguno.
The committee recalled that the Senate had handed the invoice by way of second studying on Thursday, December 4, 2025, earlier than referring it to the Committee on Banking, Insurance and Other Financial Institutions for additional legislative consideration.
The proposed modification comes towards the backdrop of the speedy growth of digital monetary providers in Nigeria, with fintech operators taking part in more and more vital roles in funds, transfers and different monetary transactions.
The proposed regulatory framework is anticipated to handle potential systemic vulnerabilities by guaranteeing that establishments whose operations might have an effect on the broader monetary system are subjected to acceptable supervision, no matter whether or not they function as standard banks.
It additionally seeks to promote regulatory accountability by way of the institution of an official register of designated Systemically Important Institutions.
The proposed laws additional underscores the significance of guaranteeing that technological innovation within the monetary providers trade doesn’t undermine monetary stability, client confidence and the integrity of the nation’s monetary system.
The Senate after the clause-by-clause consideration of the report on the Committee of the entire, subsequently handed the proposed laws for third studying at plenary.
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