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
    Click to comment

    Leave a Reply

    Your email address will not be published.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

    ad

    You May Also Like

    News

    The Lagos state government has unveiled plans to introduce a new tenancy law aimed at curbing arbitrary rent increases, illegal charges and other exploitative...

    News

    Nigeria Police Force National Cybercrime Center (NPF-NCCC) has arrested a mother and her daughter over alleged romance scam that defrauded a Malta-based victim of...

    News

    In a transformative initiative focused on youth empowerment, talent development and community impact, QNET, an international wellness and lifestyle company and a decade-long Official...

    News

    Nigeria’s mySMEville platform is becoming a key driver for Africa’s digital economy by closing the financial and skills gaps holding back the country’s nearly...