Senate Intensifies FinTech Regulation, Probes Ponzi Schemes at BOFIA Amendment Hearing, CBEX Case

By Inalegwu Osemi

The Nigerian Senate has stepped up moves to reinforce the country’s financial regulatory structure as Senator Opeyemi Bamidele stood in for Senate President, Senator Godswill Akpabio, at a public hearing on a proposed amendment to the Banks and Other Financial Institutions Act (BOFIA) 2020 and a motion to investigate Ponzi schemes operating in Nigeria.

The hearing centered on a Bill for an Act to Amend the Banks and Other Financial Institutions Act, No. 5 of 2020 (SB959), alongside an investigative motion addressing the growing threat of Ponzi schemes, particularly in light of the recent Crypto Bullion Exchange (CBEX) episode.
In his remarks, Senator Bamidele explained that the proposed BOFIA amendment is designed to ensure stronger supervision and effective regulation of financial technology (FinTech) institutions across the country. He observed that the rapid expansion of digital financial services necessitates improved oversight frameworks to protect investors and safeguard systemic stability.
He added that the Senate intends to equip the Central Bank of Nigeria and other critical regulatory bodies with broader powers to monitor FinTech operators efficiently, enforce compliance with existing laws, and close regulatory gaps that could undermine the nation’s financial system.
Addressing the investigative hearing on Ponzi schemes, the Senate voiced serious concern over the rising number of Nigerians being defrauded by dubious investment platforms. Lawmakers underscored that trust remains the foundation of the financial system, cautioning that unregulated Ponzi operations and digital scams could significantly weaken public confidence.
The Senate consequently resolved to conduct a comprehensive investigation into the operations of CBEX and similar schemes to curb further fraud, financial losses, and money laundering activities. It reaffirmed the importance of proactive enforcement measures and stronger collaboration among relevant agencies to shield unsuspecting investors.
Chairman of the Senate Committee on ICT and Cybersecurity, Shuaib Afolabi Salisu, praised FinTech firms for advancing financial inclusion and supporting economic growth. However, he urged operators to enhance their internal compliance mechanisms and maintain close cooperation with regulators to preserve public trust.
Participants at the hearing included representatives from the Bank of Industry, Stanbic IBTC Bank, the Federal Inland Revenue Service, the Economic and Financial Crimes Commission, and the Federal Ministry of Industry, Trade and Investment, among other key stakeholders.
The Senate further instructed the Central Bank of Nigeria, Moniepoint, the EFCC, and other concerned agencies to submit comprehensive memoranda to the Secretariat within two weeks to aid legislative consideration of both the amendment bill and the investigative motion.
Lawmakers emphasized that tighter oversight and stronger accountability across the financial ecosystem would bolster stability, enhance transparency, and rebuild confidence in Nigeria’s rapidly evolving digital economy.