The President of the Senate, Godswill Akpabio, on Tuesday launched a public hearing on proposed amendments to the Banks and Other Financial Institutions Act BOFIA 2020 and an investigative motion into the rise of Ponzi schemes in Nigeria. Akpabio was represented by the Senate Leader, Opeyemi Bamidele.
The one day hearing, held on SB959, was jointly organised by the Senate Committees on Banking, Insurance and Other Financial Institutions, ICT and Cyber Security, Capital Market, and Anti Corruption and Financial Crimes. Bamidele noted that Nigeria’s financial sector has undergone rapid transformation driven by digital innovation, fintech expansion, and cryptocurrency-related activities, making regulatory updates imperative.
The proposed BOFIA amendments aim to strengthen the supervisory powers of the Central Bank of Nigeria CBN by providing clearer statutory authority to designate and oversee systemically important institutions, including technology-enabled financial service providers. Bamidele stressed that enhanced supervision safeguards sustainable growth without constraining innovation and warned against fragmenting fintech regulation by creating separate agencies.
On Ponzi schemes, the Senate highlighted the dangers of fraudulent digital investment platforms, citing the Crypto Bullion Exce CBEX collapse that affected 1200 victims with total losses of N1.3 trillion. The investigative hearing will examine enforcement gaps, regulatory coordination, and potential deterrent penalties.
Stakeholders, including the CBN, Chartered Institute of Bankers of Nigeria CIBN, the Bank of Industry, and the Federal Competition and Consumer Protection Commission FCCPC, expressed support for coordinated supervision and stressed proportional reporting requirements to avoid overburdening smaller fintechs. The Economic and Financial Crimes Commission EFCC noted ongoing asset recovery from CBEX operators for forfeiture to the Federal Government.
Bamidele reiterated that strengthening oversight and addressing fraudulent schemes are critical to preserving ility, restoring trust, and promoting responsible innovation in Nigeria’s financial system.
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