High-Profile Hacking Alert: Oshiomhole Calls for Stricter Fintech Regulation

​The Call for Oversight: Lessons from a High-Profile Cyber Incident

​A recent revelation by Senator Adams Oshiomhole, representing Edo North, during a debate at the National Assembly has cast a spotlight on the growing necessity for stricter regulation of Nigeria's booming Fintech sector. Oshiomhole, contributing to a debate on a bill seeking to amend the Banks and Other Financial Institutions Act (BOFIA), shared a personal account of falling victim to cyber fraud, with the illicit transactions traced back to non-traditional financial platforms.

​The former Edo state governor revealed that when his account was hacked, the perpetrators utilized institutions such as OPay and MoneyPoint for the transactions, noting that none of the registered commercial banks were involved. This incident served as the crux of his argument for greater scrutiny of technology-driven financial service providers.

​The Regulatory Gap in Fintech

​Oshiomhole's primary concern centers on the perceived regulatory imbalance and lack of accountability when compared to traditional, established banks. He highlighted several critical areas where fintechs, despite their vital role in the economy, operate with less visible oversight:

​Lack of Visibility of Ownership: The Senator pointed out that while the directors of traditional institutions like First Bank or Zenith Bank are publicly known, the same level of transparency is often lacking for the directors of fintech companies like OPay. This opacity makes it harder to hold individuals accountable in cases of fraud or company failure.

​Operational Standards and Social Responsibility: He emphasized that traditional banks maintain physical branches and employ a large workforce, thus bearing a social responsibility to the economy. In contrast, Oshiomhole argued that many non-traditional platforms operate digitally with minimal physical presence, potentially side-stepping some basic operational and regulatory standards.

​The Burden on the State: Crucially, the Senator warned that if these major technology-driven financial institutions were to fail or "go under", the burden of compensating Nigerians who have been defrauded or lost savings would inevitably fall on the political authorities, necessitating proactive legislation now.

​Legislative Action and the Need for Stronger Laws

​The debate focused on a bill sponsored by Senator Tokunbo Abiru, which seeks the designation, registration, and enhanced supervision of systemically important institutions (SIIs)—a category that would logically include large, influential fintech players.

​Oshiomhole stressed that while the Central Bank of Nigeria (CBN) issues regulations, laws enacted by the National Assembly carry a more enforceable and fundamental weight. Therefore, he urged the Red Chamber to not only support the legislation but also conduct a detailed line inquiry to ensure all potential loopholes are blocked, including those related to the ownership structure of these financial technology companies.

​This high-profile incident and the subsequent legislative push underscore the growing consensus that as fintechs rapidly scale and integrate into the national financial infrastructure, the regulatory framework must evolve rapidly to ensure consumer protection, financial stability, and system security against sophisticated cyber threats.