Senate Passes Bill To Tighten Regulation Of Fintech Firms

…CBN To Conduct Stress Tests, Enforce Cybersecurity Standards

The Senate on Tuesday handed a invoice searching for to strengthen the regulation of main monetary know-how corporations and different non-bank monetary establishments.

The invoice empowers the Central Bank of Nigeria (CBN) to topic operators with vital affect on the monetary system to stricter oversight.

The proposed modification to the Banks and Other Financial Institutions Act (BOFIA), 2020, seeks to handle rising dangers related to the fast growth of Fintech operations, significantly corporations whose transaction volumes, buyer base and interconnectedness might threaten the nation’s monetary stability.

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.

It was introduced by the Chairman of the Senate Committee on Banking, Insurance and Other Financial Institutions, Senator Tokunbo Abiru.

Abiru, who represents Lagos East senatorial district, sponsored the laws alongside members of his committee. He introduced the committee’s report throughout plenary presided over by Senate President Godswill Akpabio.

Under the proposed framework, the CBN can have the authority to establish and designate qualifying Fintech corporations and different non-bank monetary establishments as Systemically Important Institutions (SIIs), bringing them underneath enhanced prudential supervision.

The proposed legislation additionally offers for stricter company governance necessities, cybersecurity safeguards, technology-risk administration, operational resilience and better transparency within the possession buildings of designated establishments.

It additional empowers the apex financial institution to conduct stress exams, data-integrity assessments and enhanced regulatory reporting, whereas granting it supervisory entry to related info and operational methods of designated establishments.

The laws additionally seeks to determine an official register of systemically vital establishments, strengthen useful possession disclosures and supply enforcement mechanisms and sanctions for operators that breach regulatory necessities.

The committee disclosed that the invoice obtained broad assist from regulatory businesses, authorities establishments, monetary operators {and professional} our bodies throughout a public listening to held on March 4, 2026.

It stated the CBN supported the proposed modification, arguing that enormous Fintech operators, due to their transaction volumes, buyer bases and interconnected operations, require efficient risk-based supervision to safeguard monetary stability.

The committee added that the Federal Competition and Consumer Protection Commission (FCCPC) additionally endorsed stronger oversight however known as for clear boundaries between prudential regulation, competitors enforcement and shopper safety to stop duplication of obligations between regulatory businesses.

Other establishments that supported the invoice, in keeping with the committee, included the Nigeria Deposit Insurance Corporation (NDIC), Nigerian Communications Commission (NCC), Economic and Financial Crimes Commission (EFCC), Ministry of Finance Incorporated, Federal Ministry of Industry, Trade and Investment and Bank of Industry.

Several banks and different monetary establishments had been additionally stated to have backed the proposed modification, with stakeholders typically emphasising the necessity to strengthen monetary stability, encourage accountable digital innovation, enhance regulatory coordination and defend customers.

The committee stated its consideration of the laws adopted consultations with stakeholders and members of the general public, together with invites for memoranda by way of ads in print and digital media.

The invoice had earlier handed second studying on December 4, 2025, earlier than being referred to the banking committee for additional legislative consideration.

The Senate subsequently thought-about the committee’s report clause by clause on the Committee of the Whole and handed the invoice for third studying, paving the way in which for the proposed growth of regulatory oversight over Nigeria’s fast-growing digital monetary companies trade.