Senate Passes Bill to Bring Big Fintechs, Non-Bank Financial Institutions Under CBN Regulation.
The proposed amendment to the Banks and Other Financial Institutions Act (BOFIA) seeks to empower the Central Bank of Nigeria (CBN) to designate and regulate systemically important fintech companies and other non-bank financial institutions.
The proposed legislation is designed to bring financial institutions whose size, transaction volumes, customer base and operational interconnectedness could pose risks to the country’s financial stability under enhanced regulatory supervision.
The initiative, which seeks to amend the Banks and Other Financial Institutions Act, 2020, also provides for stricter corporate governance standards, cybersecurity safeguards, technology-risk management, operational resilience and greater transparency in the ownership structures of designated institutions.
The Chairman of the Senate Committee on Banking, Insurance and Other Financial Institutions, Senator Mukhail Adetokunbo Abiru, presented the committee’s report on the bill during plenary presided over by Senate President Godswill Akpabio. 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. Abiru, who represents Lagos East Senatorial District, sponsored the legislation alongside members of the Senate Committee on Banking, Insurance and Other Financial Institutions.
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