Senate on Thursday began debate on a bill seeking to amend the Banks and Other Financial Institutions Act (BOFIA) 2020 to empower the Central Bank of Nigeria (CBN) to designate and supervise systemically important non-bank financial institutions, particularly major fintech operators whose activities now constitute critical national infrastructure.

Leading the debate, Tokunbo Abiru, sponsor of the bill and chairman of the Senate Committee on Banking, Insurance and Other Financial Institutions, said the amendment had become urgent due to the rapid transformation of Nigeria’s financial ecosystem and the emergence of large technology-enabled service providers operating at a scale previously unseen in the country.

Abiru noted that fintechs such as mobile money operators, payment service banks, wallet providers, digital lenders and switching companies now serve tens of millions of Nigerians, process huge daily transaction volumes and hold vast pools of sensitive financial data, yet operate within a regulatory framework that has not fully evolved to match their systemic importance.

“The reality today is that a non-bank institution, because of its market dominance, data concentration, customer reach or technological capacity, may pose risks equal to or even greater than those posed by a traditional bank,” Abiru said.

“We are therefore confronted with a regulatory gap that leaves critical parts of the financial system operating outside the highest tier of statutory oversight. This bill seeks to correct that mischief.”

He warned that without modernising BOFIA, the country risked exposing itself to data insecurity, foreign control of sensitive financial infrastructure and vulnerabilities that could undermine national security.

The senator stressed that many fintechs operate across foreign-owned networks, store customer data offshore, or use cloud systems outside regulatory reach, raising concerns around data sovereignty.

“Today, we cannot say with certainty where all the financial and behavioural data processed by some of these institutions is stored, who has access to it, or which foreign jurisdictions may lay claim to it,” he said.

Abiru recalled the temporary CBN restriction on fintech onboarding in April 2024, following issues around KYC compliance, money-laundering red flags and suspicious transactions, a development that, he said, demonstrated the limitations of existing regulatory tools.

The amendment bill proposes five key objectives, including establishing a statutory framework for designating systemically important institutions, creating a national registry of fintechs, empowering the CBN to impose enhanced supervisory requirements, strengthening data sovereignty, and improving consumer protection.

He dismissed suggestions that a new regulatory agency should be created for fintech oversight, arguing that such duplication would fragment regulation and undermine efficiency.

“Fintech regulation is deeply intertwined with monetary policy, payments oversight, prudential supervision, and systemic-risk monitoring, functions that already reside naturally within the Central Bank,” he said.

“International best practice overwhelmingly favours integrating fintech oversight within existing regulators, not creating new bureaucracies.”

Abiru urged the Senate to support the bill, which carries no financial implications under Senate rules.

Contributing to the debate, Adams Oshiomhole, former president of the Nigerian Labour Congress (NLC), shared the experience of how his accounts were once hacked, disclosing that the hackers accessed him through one of the Fintech banks.

Oshiomhole also said the identities of most of the key owners of online operators were not known and might not be held accountable for infractions since there was no law binding them to any commitments.

“I know the directors of our regular banks, but I can’t say the same of these Fintech banks.

“I don’t know the directors of MoniePoint, Opay and all others”, he added.

Oshiomhole further argued that when properly regulated through an enabling law, the operations of online financial institutions would better serve the interest of Nigerians.

Senators unanimously passed the bill for second reading and referred it to its Committee on Banking, Insurance and Other Financial Institutions for more legislative work.

Binance, global cryptocurrency exchange, has announced the launch of Binance Junior, a new parent-controlled savings app designed for children and teenagers between the ages of six and 17.

Binance

The company said the initiative would allow parents to open and manage crypto savings accounts for their children, enabling them to save and earn digital assets in a secure environment.

According to Binance, the platform restricts trading activities but permits savings through its Flexible Simple Earn feature, while parents retain full oversight of all transactions.

Co-Chief Executive Officer of Binance, Yi He, said the product was part of the firm’s broader family finance initiative aimed at preparing the next generation for financial literacy in a digital economy.

“As parents who love our children, we not only nurture them in their early development but long-term growth with responsibility and wisdom.

“Financial health and literacy are key to preparing them for the future, especially as money is evolving,” she said.

The company explained that teenagers aged 13 and above would be able to initiate transfers within the app, subject to daily limits and local regulations, while parents would be notified of every transaction and could disable accounts at any time.

Binance also unveiled a self-published educational book, ABC’s of Crypto, which introduces children and families to basic concepts of blockchain, security, and digital assets in a simplified format.

The firm noted that Binance Junior would be available in select countries via the Apple App Store and Google Play Store.

Nigeria Deposit Insurance Corporation (NDIC) has cautioned Nigerians to be wary of Ponzi schemes and fraudulent investment platforms, warning that such scams continue to endanger the hard-earned savings of unsuspecting citizens.

Mr Thomson Oludare Sunday, managing director of the Corporation, issued the warning during the NDIC Special Day at the 46th Kano International Trade Fair.

He was represented by Mr Kayode Shokunbi, deputy director in the Procurement Management Services Department.

Sunday said the advice was necessary to help depositors protect their finances in an era where deceptive online investment channels are increasingly targeting the public.

“Your vigilance is crucial to safeguarding your hard-earned savings. I urge you to remain vigilant and visit the NDIC Pavilion during this Trade Fair. Our team is ready to provide insights, answer questions, and share information on deposit insurance and our activities,” he said

He also emphasised the importance of ensuring that bank customers link their Bank Verification Number (BVN) with the correct name as it appears on their official identification documents.

According to him, accurate BVN details are vital for depositors to receive their insured funds seamlessly in the event of a bank failure.

“This ensures that, in the unlikely event of a bank failure, you will promptly receive your insured sum of ₦5,000,000 for commercial banks and mobile money operators, and ₦2,000,000 for microfinance, primary mortgage, and payment service banks into an alternate bank account with the same name as on your ID, without visiting any NDIC office,” he explained.

Sunday noted that both the NDIC and the Central Bank of Nigeria (CBN) have strengthened regulatory frameworks to promote compliance and stability across all deposit-taking institutions.

He assured the public that despite the March 2026 deadline for bank recapitalisation, the Corporation is fully prepared to ensure a smooth and orderly process.

“For 37 years, the NDIC has played a vital role in safeguarding depositors’ funds, particularly for the most vulnerable, and reinforcing the stability of our financial system,” he added.

He described the trade fair, held under the theme ‘Empowering SMEs for Sustainable Development’, as an important platform where innovation, entrepreneurship, and financial literacy converge to support Nigeria’s economic development aspirations.

The NDIC’s participation, he said, aligns with its commitment to deepening public awareness of deposit insurance and strengthening trust in the nation’s financial system.