Nigerian Fintech Regulation and Security Crisis: Oshiomhole Demands Stricter Oversight

Nigerian Fintech Regulation and Security challenges. The rising prevalence of cyber fraud channeled through digital payment platforms has ignited a forceful demand for comprehensive legislative action, led by Senator Adams Oshiomhole (Edo North). The lawmaker, speaking during the Senate plenary on Thursday, December 4, 2025, insisted that the National Assembly must significantly tighten its oversight of financial technology (Fintech) institutions operating outside the traditional banking architecture.

Senator Oshiomhole anchored his call on a chilling personal experience, revealing that his bank account had been compromised by hackers. He noted that the illicit transactions following the breach were conducted exclusively through non-traditional financial platforms, naming OPay and MoneyPoint. Crucially, he emphasized that none of the transfers utilized registered commercial banks, highlighting a regulatory blind spot.

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Contributing to the debate on a bill seeking to amend the Banks and Other Financial Institutions Act (BOFIA) for the enhanced supervision of systemically important institutions, Oshiomhole raised critical concerns about the visibility and accountability of these fintech giants:

• Accountability Gap: He argued that while the directors of traditional institutions like First Bank, Access Bank, and Zenith Bank are known, the ownership and directors of major players like OPay and MoneyPoint remain opaque.
• Social Responsibility: The former Edo State Governor pointed out that these technology-driven companies bear no social responsibility, citing their lack of physical branches in major hubs like Abuja and minimal local labour employment.
• Government Liability: Oshiomhole cautioned that should any of these major non-traditional platforms collapse, the political authority would be saddled with the burden of providing relief or compensation to duped Nigerian citizens.

The lawmaker stressed that while the Central Bank of Nigeria (CBN) issues regulations, laws enacted by the National Assembly carry superior, enforceable weight. He urged the Senate, particularly the committee reviewing the legislation, to conduct a “detailed line inquiry” to ensure all potential loopholes are captured, including the identification of the beneficial owners of these digital banks.

The bill, sponsored by Senator Tokunbo Abiru (Lagos East), ultimately passed the second reading, signaling the Senate’s readiness to address the critical gaps in Nigerian Fintech Regulation and protect consumers from the risks associated with the rapidly expanding digital economy.