Oshiomhole urges stronger regulation of tech-driven financial institutions
Senator Adams Oshiomhole, who represents Edo North, has urged the National Assembly to enhance oversight of financial institutions that operate outside of the conventional banking sector.
He made this statement on Thursday while participating in the plenary discussion regarding a bill designed to amend the Banks and Other Financial Institutions Act to enable the designation, registration, and increased supervision of systemically significant institutions.
Oshiomhole called on the Senate to not only support the legislation but also to examine it thoroughly to make sure “all potential loopholes are addressed.”
He referenced his own encounter with cybercrime, pointing out that non-traditional financial platforms are becoming more frequently exploited for illegal transactions.
“When my account was hacked, I discovered that all the institutions involved were OPAY and Moneypoint; none of the registered banks were implicated,” he stated.
“And when I inquired, I was informed that was the case. They don’t have a branch in Abuja. They don’t employ staff. They don’t fulfill any social responsibilities.”
The legislator indicated that the bill’s measures would assist in ensuring that technology-driven financial institutions adhere to crucial regulatory and operational standards.
“For instance, I am familiar with all the directors of First Bank, Access Bank, and Zenith Bank. I have no knowledge of the directors of OPAY. I have no knowledge of the directors of Moneypoint,” he remarked.
“These are visible participants in our economy, playing such a vital role. When they collapse, the political authority will bear the responsibility for providing assistance to Nigerians who have been defrauded.”
He emphasized that the government has an obligation to safeguard its citizens “in every aspect.”
Oshiomhole noted that laws enacted by the National Assembly carry enforceable authority, in contrast to regulations issued by the Central Bank of Nigeria.
“Therefore, I believe we should support it,” the former governor of Edo state stated.
“And I would encourage you to conduct a more comprehensive investigation to ensure that all loopholes are identified, including the ownership of these banks.”
As the debate concluded, the bill—championed by Senator Tokunbo Abiru of Lagos East—successfully passed its second reading.
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