Senate Moves to Strengthen FinTech Oversight, Probes Ponzi Schemes at Public Hearing on BOFIA Amendment, CBEX Incident
By ThankGod Inalegwu
The Nigerian Senate on Tuesday advanced efforts to strengthen the nation’s financial regulatory framework as Senator Opeyemi Bamidele represented the President of the Senate, Senator Godswill Akpabio, at a public hearing on a bill to amend the Banks and Other Financial Institutions Act (BOFIA) 2020 and a motion to investigate the operations of Ponzi schemes in Nigeria.
The public hearing focused on a Bill for an Act to Amend the Banks and Other Financial Institutions Act, No. 5 of 2020 (SB959), and an investigative motion into the rising menace of Ponzi schemes, with particular reference to the recent Crypto Bullion Exchange (CBEX) incident.
Speaking at the hearing, Senator Bamidele emphasized that the amendment to BOFIA is aimed at ensuring proper monitoring and effective regulation of financial technology (FinTech) institutions in Nigeria. He noted that the rapid growth of digital financial services demands stronger supervision mechanisms to safeguard investors and maintain systemic stability.
According to him, the Senate seeks to empower the Central Bank of Nigeria and other key regulatory agencies with enhanced authority to effectively monitor FinTech operators, ensure compliance with extant laws, and prevent regulatory loopholes that could threaten the nation’s financial system.
On the investigative hearing into Ponzi schemes, the Senate expressed deep concern over the increasing number of Nigerians falling victim to fraudulent investment platforms. Lawmakers stressed that the financial system operates fundamentally on trust, warning that unchecked Ponzi activities and digital fraud could erode public confidence.
The Senate resolved to carry out a thorough probe into the operations of CBEX and similar schemes to prevent further cases of fraud, financial losses, and money laundering. It reiterated the need for proactive enforcement and inter-agency collaboration to protect unsuspecting investors.
Chairman of the Senate Committee on ICT and Cybersecurity, Shuaib Afolabi Salisu, commended FinTech institutions for their contributions to financial inclusion and economic growth. He, however, urged operators to strengthen internal compliance systems and work closely with regulators to sustain public trust.
Stakeholders present at the hearing included representatives of 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 institutions.
The Senate directed the Central Bank of Nigeria, Moniepoint, the EFCC, and other relevant agencies to submit detailed memoranda to the Secretariat within two weeks to support legislative deliberations on the bill and the investigative motion.
Lawmakers maintained that strengthening oversight and enforcing accountability within the financial ecosystem would reinforce stability, promote transparency, and restore public confidence in Nigeria’s evolving digital economy.