Adams Oshiomhole, senator representing Edo north, says the national assembly must tighten oversight of financial institutions operating outside the traditional banking system.
Oshiomhole spoke on Thursday while contributing to debate during the plenary on a bill seeking to amend the Banks and Other Financial Institutions Act to provide for the designation, registration and enhanced supervision of systemically important institutions.
Oshiomhole said the red chamber should not only support the legislation but also examine it closely to ensure that “all possible loopholes are blocked”.
He said his personal experience with cyber fraud shows how non-traditional financial platforms are being used for illicit transactions.
“When they hacked into my account, I found that all the institutions used were OPAY and Moneypoint; none of the registered banks were used,” he said.
“And when I asked, I’m told that’s it. They don’t have a branch in Abuja. They don’t employ labour. They bear no social responsibility.”
The lawmaker said the provisions of the bill will help ensure that technology-driven financial institutions meet basic regulatory and operational standards.
“For example, I know all the directors of First Bank, of Access Bank, of Zenith Bank. I don’t know the directors of OPAY. I don’t know the directors of Moneypoint,” he said.
“These are visible players in our economy, playing such an important role. And the day they go under, the political authority will be left with the burden of providing for Nigerians who have been duped.”
He said the government holds a duty to protect citizens “in every ramification”.
Oshiomhole added that laws enacted by the national assembly carry enforceable weight, unlike regulations issued by the Central Bank of Nigeria (CBN).
“So, I think we should support it,” the former Edo state governor said.
“And I would encourage you to do a more detailed line inquiry to ensure that all the loopholes are captured, including the owners of these banks.”
At the end of the debate, the bill, sponsored by Tokunbo Abiru, senator representing Lagos east, passed the second reading.
