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Nigeria

Nigerian Senate passes bill to bring major fintechs under CBN oversight

The bill would let the central bank designate and tightly supervise systemically important fintechs and non-bank lenders, a shift that affects digital finance operators and financial stability.

Photo: NALTF

What happened

The Nigerian Senate on Tuesday passed for third reading a bill to strengthen regulation of major financial technology companies and non-bank financial institutions. NALTF+3 The bill amends the Banks and Other Financial Institutions Act and empowers the Central Bank of Nigeria to designate and regulate systemically important fintech companies and non-bank financial institutions. NALTF+2 Targeted institutions are those whose size, transaction volumes, customer base and operational interconnectedness could pose risks to the country's financial stability. NALTF+2 The bill, designated SB. 959, was sponsored by Senator Adetokunbo Abiru, chairman of the Senate Committee on Banking, Insurance and Other Financial Institutions, and was presented during a plenary presided over by Senate President Godswill Akpabio. NALTF+2

Around it

The bill provides for stricter corporate governance standards, cybersecurity safeguards, technology-risk management, operational resilience and greater transparency in the ownership structures of designated institutions. USAfricaLive+1 The measure is aimed at addressing emerging risks linked to the rapid growth of digital financial services. NALTF+1

Sources

  1. NALTFSenate Passes Bill to Regulate Systemically Important Fintechs
  2. USAfricaLiveNigerian Senate Approves Bill to Enhance Regulation of Fintechs and Non-Bank Financial Institutions
  3. thisdaylive.comSenate Passes Bill to Bring Big Fintechs, Non-Bank Financial Institutions Under CBN Regulation
  4. BlueprintSenate passes bill to bring big fintechs, non-bank financial institutions under CBN regulation

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