Senate Passes Bill to Expand CBN Powers Over Fintech Companies
Nigeria’s financial technology industry could face a new wave of regulatory scrutiny as the Senate has passed a bill seeking to expand the Central Bank of Nigeria’s (CBN) supervisory powers over major fintech companies and other non-bank financial institutions whose operations could pose risks to the country’s financial stability.
The proposed legislation seeks to amend the Banks and Other Financial Institutions Act (BOFIA), 2020, by empowering the CBN to identify and designate qualifying fintech companies and other non-bank financial institutions as Systemically Important Institutions (SIIs). Such designation would subject affected organisations to stricter regulatory requirements and enhanced supervision by the apex bank.
The bill, SB. 959, 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, was passed on Tuesday, November 10, 2026, following clause-by-clause consideration by the Senate Committee of the Whole.
The Chairman of the Senate Committee on Banking, Insurance and Other Financial Institutions, Senator Mukhail Adetokunbo Abiru, representing Lagos East, presented the committee’s report during plenary presided over by Senate President Godswill Akpabio.
Abiru sponsored the bill alongside other members of the Senate Committee on Banking, Insurance and Other Financial Institutions.
Under the proposed amendment, the CBN would have the authority to designate non-bank financial institutions as systemically important based on factors such as their operational size, transaction volumes, customer base and level of connection with other players in the financial system.
Once designated, the institutions would be required to comply with additional regulatory obligations designed to minimise operational risks and protect the stability of Nigeria’s financial services sector.
The proposed legislation also provides for the creation of an official register of designated Systemically Important Institutions, alongside stricter supervision of their corporate governance structures, cybersecurity systems, technology risk management and operational resilience.
Additionally, the bill introduces requirements for stress testing, data integrity assessments, more comprehensive regulatory reporting and supervisory access to relevant information and operational systems.
It also seeks to improve transparency in corporate ownership by strengthening beneficial ownership disclosure requirements and introducing enforcement measures and sanctions against institutions that violate applicable regulatory standards.
The proposed changes come amid the rapid expansion of digital financial services in Nigeria, where fintech companies and other technology-driven operators have become increasingly important to everyday financial transactions.
According to the Senate committee, the growing volume of digital payments, electronic transfers and other technology-enabled financial services has created a need for a regulatory framework that reflects the potential impact of major non-bank financial institutions on the wider economy.
The committee explained that the bill was developed after consultations with relevant regulatory agencies, financial institutions, professional bodies and other stakeholders.
It added that the proposed legislation received broad support during a public hearing conducted on March 4, 2026.
Among the institutions that supported the amendment was the Central Bank of Nigeria, which backed efforts to strengthen the legal framework for supervising systemically important non-bank financial institutions, particularly large fintech companies whose transaction volumes, customer bases and operational connections could create risks for the country’s financial system.
The Federal Competition and Consumer Protection Commission (FCCPC) also expressed support for stronger regulatory oversight but stressed the importance of clearly separating prudential regulation from competition enforcement and consumer protection responsibilities.
The commission called for effective coordination between itself and the CBN to prevent overlapping regulatory functions while ensuring that the proposed framework protects consumers and promotes fair competition.
Other institutions that endorsed the proposed amendment include 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 commercial banks and other financial institutions also supported the proposed changes.
The Senate committee noted that stakeholders broadly agreed on the need to strengthen financial stability, encourage responsible digital innovation, improve regulatory coordination, promote operational compliance and protect consumers.
It further explained that an inclusive legislative process was adopted to accommodate recommendations and concerns raised by relevant institutions and members of the public.
Ahead of the public hearing, advertisements were published across print and electronic media, inviting interested stakeholders and members of the public to submit memoranda and contributions.
The hearing was officially declared open on behalf of the Senate President by the Senate Chief Whip, Senator Mohammed Tahir Monguno, representing Borno North.
The bill had earlier scaled second reading on Thursday, December 4, 2025, before being referred to the Senate Committee on Banking, Insurance and Other Financial Institutions for further legislative scrutiny.
Its passage at third reading marks another significant step in the proposed overhaul of Nigeria’s regulatory framework for the rapidly expanding digital financial services industry.
If enacted, the amendment would ensure that financial institutions capable of disrupting the wider economy face appropriate regulatory supervision, regardless of whether they operate as conventional banks or technology-driven financial service providers.
Ultimately, the proposed legislation seeks to strengthen regulatory accountability, improve consumer confidence and ensure that the rapid growth of financial technology does not compromise the safety, integrity and stability of Nigeria’s financial system.
