Connect with us

Hi, what are you looking for?

E-Financial

Senate Begins BOFIA Amendment, Probes Ponzi Schemes After CBEX Collapse

Nigerian Senate has launched a public hearing to amend the Banks and Other Financial Institutions Act (BOFIA) 2020 while investigating rampant ponzi schemes, spotlighting the Crypto Bridge Exchange (CBEX) collapse that defrauded 1,200 victims of ₦1.3 trillion.

Senate President Godswill Akpabio, represented by Senate Leader Opeyemi Bamidele, opened Tuesday’s session jointly organised by committees on Banking, ICT/Cybersecurity, Capital Market, and Anti-Corruption. The bill (SB959) aims to bolster Central Bank of Nigeria (CBN) oversight of fintechs and systemically important digital institutions without creating a duplicate regulator.

Akpabio stressed: “Enhanced supervision is not a constraint on growth; it is a safeguard for sustainable growth,” rejecting a standalone fintech commission to avoid fragmented oversight. Crypto licensing falls under SEC, but transaction stability remains CBN’s domain.

Senate Banking Committee Chairman Mukhail Abiru highlighted a national registry for transparency and risk-based fintech supervision, backed by CBN Deputy Governor Philip Ikeazor, who noted some fintechs rival mid-sized banks in volume.

The probe targets regulatory gaps exposed by CBEX’s unrealistic returns amid economic hardship. EFCC’s Dein Whyte reported asset seizures from operators, with forfeiture proceedings underway.

CBN’s Orekia Opemi-Yusuf warned separate regulators could stunt Nigeria’s expanding fintech sector, while FCCPC’s Ondaje Ijagwu urged clear lines between prudential rules and consumer protection. The reforms seek to restore trust in a digital economy battered by fraud.

Loading

Spread the love
Frank
Written By

Franklin Ugo Ndibe is a seasoned Nigerian journalist and media professional renowned for his incisive reporting and editorial leadership in the information and communications technology (ICT) sector.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

NCC
ad

You May Also Like

News

President Bola Tinubu has asked the Senate to approve fresh external borrowing of $7.7 billion to finance the 2026 budget. The request, equivalent to...

News

National Information Technology Development Agency (NITDA) has reaffirmed its commitment to strengthening Nigeria’s digital sovereignty and protecting the nation’s critical digital infrastructure through its...

Opinion

By Blaise Udunze Nigeria’s banking industry has spent years rebuilding capital, restructuring institutions and celebrating stronger financial performance. Amidst all these developments, one fundamental...

Opinion

By Blaise Udunze The last Monetary Policy Committee (MPC) meeting of the Central Bank of Nigeria (CBN) was its 307th meeting, held on September...