Senate passes bill to strengthen CBN regulation of fintechs
AI Executive Briefing
Gemini Flash AI~45s readThe Nigerian Senate has passed bill SB.959, which amends the Banks and Other Financial Institutions Act of 2020 to bring major fintechs and non-bank financial institutions under enhanced CBN supervision. The legislation aims to mitigate systemic risks posed by the rapid growth and interconnectedness of digital financial service providers.
Context & Background
- ✦The rapid expansion of digital financial services in Nigeria has necessitated a legislative update to ensure regulatory oversight keeps pace with technological disruptions.
- ✦The bill seeks to harmonize the operations of large fintechs with traditional banking standards to protect the integrity of the national financial system.
Key Figures & Named Entities
•Senator Adetokunbo Abiru, Chairman of the Senate Committee on Banking, Insurance and Other Financial Institutions, presented the report.•The Federal Competition and Consumer Protection Commission (FCCPC) advocated for clear distinctions between prudential regulation and competition enforcement.
Outlook & Next Steps
Following the passage of the bill, the legislation will move toward finalization, establishing a formal register for SIIs and implementing new enforcement mechanisms for regulatory compliance.
Key Takeaways
AI Summary- The Senate passed bill SB.959 to amend the Banks and Other Financial Institutions Act, 2020, granting the CBN authority to regulate major fintechs as Systemically Important Institutions (SIIs).
- Designated institutions will face stricter requirements regarding cybersecurity, corporate governance, stress testing, and operational resilience to mitigate systemic financial risks.
- The bill received broad support from key regulatory bodies including the CBN, FCCPC, NDIC, and EFCC, aiming to balance digital innovation with financial stability.
Key Facts:December 4, 2025: The bill passed its second reading in the Senate.March 4, 2026: A public hearing was conducted to gather stakeholder input on the proposed legislation.Tuesday: The Senate passed the bill following a clause-by-clause consideration at the Committee of the Whole.
Editorial Excerpt
By Henry Umoru ABUJA – The Senate has passed a bill seeking to strengthen the regulatory oversight of major financial technology companies and other non-bank financial institutions in Nigeria.
Frequently Asked Questions About This Story
What criteria will the CBN use to designate a fintech as a Systemically Important Institution?
The CBN will designate institutions based on factors including their size, transaction volumes, customer base, and their level of interconnectedness with the wider financial system.
What is the primary objective of the SB.959 amendment?
The objective is to strengthen the CBN's regulatory oversight of non-bank financial institutions and fintechs to address emerging vulnerabilities and risks to Nigeria's financial stability.
