The Central Bank of Nigeria (CBN) has issued a stern warning to financial institutions, cautioning them to comply with anti-money laundering (AML) and counter-terrorism financing (CTF) regulations or face severe consequences. This directive is part of efforts to safeguard Nigeria’s financial system, restore investor confidence, and revitalize the economy.
Speaking at the 59th Annual Bankers’ Dinner in Lagos, CBN Governor Dr. Yemi Cardoso unveiled the apex bank’s 2025 policy agenda, emphasizing the need for structural reforms to address systemic inefficiencies and economic setbacks. Dr. Cardoso announced a comprehensive overhaul of governance and compliance frameworks across financial institutions, which will undergo regulatory scrutiny by 2025.
As part of its enforcement drive, the CBN imposed fines totaling N15 billion on 29 Deposit Money Banks (DMBs) for failing to comply with AML/CTF requirements. Dr. Cardoso described these penalties as a clear signal of the bank’s commitment to fostering transparency, accountability, and deterring financial malpractices within the sector.
The CBN governor also highlighted broader economic challenges, revealing that Nigeria suffered a loss of N6.2 trillion in 2022 due to distortions in the foreign exchange (FX) market and restrictive policies. These challenges, he noted, created uncertainty, undermining investor confidence and stalling growth in critical sectors.
To address these issues, the CBN is introducing an electronic FX matching system aimed at correcting distortions and ensuring a stable and transparent FX market. Dr. Cardoso explained, “The current dollar exchange rate reflects the price that the most desperate buyers are willing to pay, which does not represent the true market value of the naira. The electronic matching system will enhance the price discovery process, boost oversight, and ensure stability.”
Among the policy initiatives outlined by Dr. Cardoso are ambitious targets, including achieving 80% financial inclusion by 2026, implementing the open banking framework, advancing contactless payment systems, expanding the regulatory sandbox, and exiting the FATF grey list by Q2 2025.
The governor also assured the public of the bank’s commitment to addressing challenges with cash withdrawals, encouraging customers to report issues through designated channels.
Economic analysts have praised the CBN’s plans, describing them as transformative and critical to rebuilding Nigeria’s financial integrity. However, they cautioned that the success of these policies hinges on effective implementation and sustained enforcement.
Victor Chiazor, Head of Research at FSL Securities, noted that the loss of N6.2 trillion in 2022 underscores the inefficiencies of a rigid FX regime. He emphasized that a more flexible and transparent FX system would restore confidence in the naira, attract investment, and foster economic stability.
“The CBN’s 2025 roadmap reflects a progressive vision for Nigeria’s financial sector, but its success depends on consistent execution, transparency, and collaboration. If implemented effectively, these policies could stabilize the naira, attract foreign investments, and boost economic growth through broader financial access and technological advancements,” Chiazor concluded.
Dr. Cardoso expressed optimism about the reforms, stating, “A bank that prioritizes compliance does more than protect itself; it strengthens the entire financial ecosystem. Together, we must demonstrate to the public and the world that we are stewards of integrity and trust.”
