The Central Bank of Nigeria (CBN) has unveiled a dedicated Compliance Department, a move that underscores its determination to strengthen oversight of non-prudential risks across the nation’s financial system. This new department reflects the apex bank’s strategic response to the growing complexities of the financial landscape, where traditional regulatory approaches are no longer sufficient to address emerging threats.
According to a circular issued to regulated financial institutions on Thursday, the department was first established in the first quarter of 2025 and became fully operational in the second quarter. Its mandate is broad but targeted—focusing on risks that go beyond capital adequacy and liquidity concerns. These include money laundering, terrorism financing, cyberattacks, weak corporate governance, fraudulent practices, and other compliance failures that could undermine trust in the financial system.
The establishment of the Compliance Department forms part of the CBN’s wider structural reforms designed to improve regulatory efficiency and clarify institutional responsibilities. By creating a specialized unit, the Bank aims to ensure that oversight is not only more coordinated but also more proactive, enabling regulators to anticipate and address risks before they destabilize the market. The apex bank emphasized that this reform is intended to embed regulatory effectiveness within existing supervisory frameworks while enhancing the overall resilience of Nigeria’s financial sector.
In recent years, Nigerian financial institutions have faced mounting pressure to align with global regulatory standards and adapt to the digital transformation sweeping across the industry. With the rise of fintech solutions, mobile payments, and cross-border transactions, the system has become more vulnerable to sophisticated financial crimes and compliance breaches. The CBN’s new Compliance Department is therefore positioned as a crucial line of defense, ensuring that innovations in finance do not outpace the ability of regulators to safeguard integrity.
As part of this renewed focus, the CBN is also intensifying its crackdown on Point-of-Sale (PoS) fraud, a fast-growing concern in Nigeria’s expanding cashless economy. Through measures such as geo-tagging, stricter operational monitoring, and the adoption of global payment standards, the Bank aims to make every digital transaction traceable, transparent, and trustworthy. By doing so, it hopes to not only protect consumers but also boost investor confidence in the Nigerian financial system.
Ultimately, the introduction of the Compliance Department signals a new era of regulatory vigilance. Beyond addressing today’s threats, the CBN is laying the groundwork for a future in which Nigeria’s financial system can stand firm against both traditional risks and the rapidly evolving challenges of the digital age. This bold step reflects the central bank’s long-term vision: a secure, transparent, and resilient financial ecosystem that inspires confidence among citizens, investors, and the international community alike.
