The Senate on Tuesday passed a landmark bill seeking to strengthen the regulation of major financial technology (Fintech) companies and non-bank financial institutions, empowering the Central Bank of Nigeria (CBN) to subject high-impact operators to enhanced regulatory oversight.
The legislation titled, A Bill for an Act to Amend the Banks and Other Financial Institutions Act, No. 5 of 2020, to Provide for the Designation, Registration and Enhanced Supervision of Systemically Important Institutions; and for Other Related Matters (SB. 959), addresses emerging risks tied to the rapid growth of digital financial services whose transaction volumes, customer base and interconnectedness pose potential risks to the nation’s financial stability.
Sponsored by the Chairman of the Senate Committee on Banking, Insurance and Other Financial Institutions, Senator Adetokunbo Abiru (Lagos East), along with members of his committee, the report was presented during plenary presided over by Senate President Godswill Akpabio, considered clause-by-clause at the Committee of the Whole, and passed for a third reading.
Under the amended framework, the CBN is granted explicit authority to identify, designate and register qualifying Fintech companies and non-bank financial institutions as Systemically Important Institutions (SIIs).
Key provisions of the bill include:
- It empowers the apex bank to conduct regular stress tests, data-integrity assessments and mandatory regulatory reporting while securing direct supervisory access to operational systems.
- It establishes strict corporate governance standards, mandatory cybersecurity safeguards, operational resilience protocols and technology-risk management frameworks.
- It also mandates an official public register of designated SIIs, strengthens beneficial ownership disclosures and introduces enforcement mechanisms and sanctions for non-compliance.
The passage follows extensive stakeholder consultations and a public hearing held on March 4, 2026. The legislation received robust support from key government agencies, regulatory bodies, and industry operators, including the Central Bank of Nigeria (CBN), the Federal Competition and Consumer Protection Commission (FCCPC), the Nigeria Deposit Insurance Corporation (NDIC), the Nigerian Communications Commission (NCC), the Economic and Financial Crimes Commission (EFCC), the Ministry of Finance Incorporated and various financial institutions.
While endorsing the bill, stakeholders highlighted the necessity of risk-based supervision to safeguard Nigeria’s financial ecosystem, foster responsible digital innovation, improve inter-agency coordination and protect consumer interests.
With the third reading completed, the bill advances in the legislative process, bringing Nigeria’s fast-growing digital financial sector under a modernized and resilient regulatory landscape.
