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Nigeria

Senate passes bill to bring major fintechs under CBN oversight

The bill would let the Central Bank of Nigeria designate large fintechs and non-bank lenders as systemically important, subjecting them to tighter supervision.

Photo: NALTF

What happened

The Nigerian Senate on Tuesday passed for third reading a bill seeking to strengthen regulatory oversight of major financial technology companies and other non-bank financial institutions. NALTF+3 The bill, SB.959, amends the Banks and Other Financial Institutions Act No. 5 of 2020 to provide for designating and registering systemically important institutions. NALTF+1 It would empower the Central Bank of Nigeria to designate qualifying fintech operators and non-bank institutions as systemically important institutions and subject them to enhanced supervision. NALTF+2 The bill was considered clause by clause at the Committee of the Whole after a report was presented by Senator Adetokunbo Abiru, chairman of the Senate Committee on Banking, Insurance and Other Financial Institutions. NALTF+1

Around it

The sponsors said the legislation addresses risks tied to the rapid growth of digital financial services, whose transaction volumes, customer base and interconnectedness could pose risks to financial stability. NALTF+1 Coverage of the bill also highlights strengthened cybersecurity and risk management requirements for financial technology operators. thisdaylive.com

Sources

  1. NALTFSenate Passes Bill to Regulate Systemically Important Fintechs
  2. thisdaylive.comSenate Passes Bill to Bring Big Fintechs, Non-Bank Financial Institutions Under CBN Regulation
  3. VanguardSenate passes bill to strengthen CBN regulation of fintechs
  4. Ground NewsNigeria: Senate Passes Bill to Place Major Fintechs Under CBN Regulation

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