The Nigerian Senate has passed a bill seeking to strengthen the Central Bank of Nigeria’s regulatory oversight of major financial technology companies and other non-bank financial institutions, as digital financial services continue to expand across the country.
The proposed legislation will empower the CBN to designate qualifying fintech operators and other non-bank institutions as Systemically Important Institutions (SIIs), subjecting them to stricter regulatory supervision based on their potential impact on the country’s financial system.
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 after clause-by-clause consideration by the Committee of the Whole.
Its passage followed the presentation of a report by the Chairman of the Senate Committee on Banking, Insurance and Other Financial Institutions, Senator Adetokunbo Abiru, representing Lagos East.
Under the proposed amendment, the CBN will be able to identify institutions as systemically important based on factors including their size, transaction volumes, customer base and level of interconnectedness with other players in the financial sector.
The bill also provides for an official register of designated institutions and enhanced prudential supervision to address risks that could threaten Nigeria’s financial stability.
Major fintech companies and other institutions covered by the proposed framework would face stricter requirements on regulatory compliance, corporate governance, cybersecurity, technology-risk management and operational resilience.
Other provisions include stress testing, data-integrity assessments, enhanced regulatory reporting and access by the CBN to relevant information and operational systems of designated institutions.
The proposed amendment also seeks to strengthen beneficial ownership disclosure, improve transparency in ownership and control structures, and introduce enforcement measures and sanctions for institutions that breach regulatory requirements.
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Presenting the committee’s report, Abiru said the legislation was designed to address emerging vulnerabilities in Nigeria’s financial services sector, particularly the growing influence of technology-driven financial service providers whose operations are increasingly connected to traditional banking institutions.
He said stronger oversight would improve the CBN’s ability to monitor risks arising from digital financial services, technological disruptions and operational failures that could have wider consequences for the financial system.
Abiru disclosed that the proposed amendment received broad support from regulatory authorities, government agencies, financial institutions and professional bodies during a public hearing held on March 4, 2026.
According to the committee’s report, the CBN supported strengthening the legal framework for supervising systemically important non-bank financial institutions, particularly large fintech operators whose transaction volumes, customer bases and interconnected operations could affect financial stability.
The Federal Competition and Consumer Protection Commission also backed stronger oversight but called for clear boundaries between prudential regulation, competition enforcement and consumer protection.
The commission urged coordination between the CBN and the FCCPC to prevent overlapping responsibilities and ensure that the proposed framework supports fair competition while protecting consumers.
Other institutions that supported the bill included the Nigeria Deposit Insurance Corporation, Nigerian Communications Commission, Ministry of Finance Incorporated, Federal Ministry of Industry, Trade and Investment, Bank of Industry and Economic and Financial Crimes Commission.
Several banks and other financial institutions also endorsed the proposed amendment.
The Senate committee said stakeholders generally supported measures to strengthen financial stability, promote responsible digital innovation, improve regulatory coordination and protect users of financial services.
The bill had earlier passed second reading on December 4, 2025, before being referred to the Senate Committee on Banking, Insurance and Other Financial Institutions for further consideration.
Its passage comes as fintech operators play increasingly important roles in Nigeria’s financial sector, particularly in electronic payments, money transfers and other digital financial services.
If enacted, the amendment would give the CBN a clearer statutory basis to subject major non-bank financial institutions to enhanced supervision where their operations pose potential risks to the wider financial system.
About the Author
Cecilia Attah is a tech analyst with a degree from Benue State University. She covers tech news and startups at TechRegard with a focus on how technology is transforming Africa and shaping the global landscape.
