The Nigerian Senate has approved legislation intended to bolster regulatory oversight of the rapidly evolving financial technology sector. During a session on Tuesday, lawmakers passed the bill, which amends the Banks and Other Financial Institutions Act (BOFIA) to empower the Central Bank of Nigeria (CBN) to regulate systemically important fintech companies and non-bank financial institutions.
The proposed amendment seeks to enhance supervision over financial entities that might pose risks to the country’s financial stability due to their size, transaction volumes, customer bases, and degree of operational interconnectedness.
Senator Mukhail Adetokunbo Abiru, chairman of the Senate Committee on Banking, Insurance and Other Financial Institutions, presented the committee’s report in a plenary session led by Senate President Godswill Akpabio. This bill is known as SB. 959 and aims to establish clearer regulations regarding the designation and registration of systemically important institutions.
Key aspects of the legislation include stricter corporate governance standards, cybersecurity measures, risk management protocols, and enhanced transparency in the ownership of designated institutions.
Under the new guidelines, the CBN will have the authority to identify non-bank financial institutions as Systemically Important Institutions (SIIs), which will subject them to more rigorous supervisory practices. Guidelines will also be established for determining which entities qualify for such designations.
Provisions in the bill emphasize the need for the CBN to track risks associated with digital financial services and technological disruptions. This includes introducing stress testing, data integrity assessments, and improved regulatory reporting. The legislation also proposes mechanisms for enforcing compliance among institutions breaching regulatory standards.
The committee reported broad support from diverse regulatory bodies and stakeholders, following a public hearing held in March 2026. The Federal Competition and Consumer Protection Commission (FCCPC) noted the importance of maintaining a clear distinction between regulatory responsibilities for consumer protection and prudential oversight. Supporters of the bill include several government agencies and financial institutions that underscored the need for enhanced financial stability and optimal digital innovation.
The initiative comes as Nigeria sees a rapid increase in digital financial services, necessitating stronger frameworks to mitigate systemic vulnerabilities. The legislative body aims to ensure that technological advancements do not threaten consumer confidence or the integrity of the financial system.
Following a thorough examination, the Senate passed the bill for third reading, paving the way for its potential enactment.
