CBN Enhances Regulatory Oversight to Strengthen Nigeria’s Financial System

Lagos, Nigeria – The Central Bank of Nigeria (CBN) has reinforced its commitment to financial stability by strengthening regulatory compliance and risk management measures across the nation’s financial institutions.

Speaking at a high-level Mandatory Compliance and Anti-Money Laundering (AML) Training Workshop in Lagos on February 28, 2025, Ms. Shola Phillips, Special Adviser to the CBN Governor on Compliance, emphasized the need for strict adherence to global banking standards to maintain confidence in Nigeria’s financial sector.

“Regulators expect financial institutions to adopt dynamic, risk-based AML and Counter-Financing of Terrorism (CFT) programs that adapt to evolving financial risks. Proactive engagement with regulatory trends and the adoption of innovative compliance solutions are crucial in meeting these expectations,” Phillips stated.

The workshop, organized in collaboration with Citi, brought together compliance officers, trade operations specialists, and correspondent banking teams from leading financial institutions. Discussions focused on global regulatory trends, emerging financial threats, and strategies for strengthening correspondent banking relationships.

Siobhan Ni Ealaithe, Managing Director of Citi’s Correspondent Banking Group, stressed the importance of robust governance frameworks in mitigating risks. She highlighted the need for Know Your Customer (KYC), Know Your Business (KYB), and Know Your Transaction (KYT) protocols to prevent illicit financial activities.

Additionally, Stephanie Bailey, Head of EMEA AML Risk Management for Foreign Correspondent Banking, warned that over $3 trillion in illicit funds circulate through the global financial system annually. She urged Nigerian financial institutions to enhance due diligence measures, leverage technology-driven risk assessments, and uphold transparency in financial transactions.

The initiative aligns with the vision of CBN Governor Olayemi Cardoso, who has consistently advocated for strong regulatory frameworks to uphold financial integrity. “A strong financial system is built on trust, and trust is earned through integrity and compliance. The CBN remains committed to setting high regulatory standards to protect Nigeria’s financial ecosystem,” Governor Cardoso stated.

By fostering a culture of compliance and reinforcing risk management strategies, the CBN aims to safeguard Nigeria’s financial sector, ensuring its stability and credibility in both local and global markets.