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    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.

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    Frank
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    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.

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