The Central Bank of Nigeria (CBN) has announced the establishment of a new Compliance Department, a strategic unit designed to combat financial crimes and strengthen oversight of non-prudential risks across the country’s financial system.
The initiative, which became fully operational in the second quarter of 2025, underscores the apex bank’s commitment to safeguarding Nigeria’s financial stability and aligning with global best practices.
In a circular issued to regulated financial institutions on Thursday, the CBN stated that the creation of the department is part of its broader structural reforms aimed at improving regulatory efficiency, enhancing institutional clarity, and ensuring focused supervision of emerging threats within the financial sector.
Nigeria’s financial system has in recent years faced increasing vulnerabilities, with crimes such as money laundering, terrorism financing, cyberattacks, and poor corporate governance undermining investor confidence.
The CBN said the new unit will directly address these risks by consolidating supervision, clarifying responsibilities, and embedding regulatory effectiveness within its frameworks.
“This structural reform forms part of the Bank’s broader efforts to consolidate and embed regulatory effectiveness within existing supervisory frameworks, clarify institutional responsibilities, and maintain focused oversight of non-prudential and emerging risks,” the CBN noted.
The Compliance Department will oversee four critical areas:
Financial crime supervision – covering anti-money laundering (AML), counter-terrorism financing (CTF), counter-proliferation financing, and sanctions compliance.
Market conduct supervision – ensuring fair disclosure practices, proper complaints management, and adherence to advertising standards.
Enterprise security supervision – addressing cybersecurity threats, data protection, and third-party risk management.
Corporate governance and ESG oversight – focusing on board effectiveness, transparency, and environmental, social, and governance compliance.
The CBN has directed that all regulatory reports, correspondence, and inquiries relating to compliance should henceforth be routed through the newly created department.
Financial institutions will also receive direct communication on designated contact points and reporting procedures.
The apex bank emphasized that this reform was necessary to ensure Nigeria remains resilient against evolving global financial crimes and digital threats.
It noted that the integration of cybersecurity and ESG supervision highlights its forward-looking approach, ensuring Nigerian banks align with international standards.
Across the globe, central banks and regulators are strengthening their compliance arms to deal with modern threats such as crypto-related crimes, cross-border illicit flows, and AI-driven fraud schemes.
Nigeria, being Africa’s largest economy, has not been immune to these challenges.
Recently, the CBN launched initiatives to clamp down on Point-of-Sale (PoS) fraud, including geo-tagging and global payment standards, ensuring digital transactions are traceable and trustworthy.
The establishment of the Compliance Department is seen as a continuation of these reforms, providing a stronger institutional backbone to tackle financial malpractices.
Financial analysts have welcomed the move, describing it as timely and necessary.
According to Lagos-based economist Dr. Ifeanyi Eze, “This department will help Nigeria bridge the compliance gap that has long existed in our financial institutions.
With global scrutiny on money laundering and terrorism financing, the CBN is positioning Nigeria as a serious player in the fight against illicit finance.”
Similarly, legal expert Barr. Amina Sule noted that the inclusion of corporate governance and ESG supervision was particularly significant.
“Global investors are increasingly concerned about transparency and sustainability.
By creating a dedicated unit to monitor these areas, the CBN is sending a strong signal to both local and foreign stakeholders that Nigeria is committed to global financial integrity,” she said.
The establishment of the Compliance Department could mark a turning point for Nigeria’s financial industry.
By tightening supervision in high-risk areas such as AML/CFT and cybersecurity, the apex bank aims to restore public confidence, reduce fraud, and improve Nigeria’s standing with international financial watchdogs such as the Financial Action Task Force (FATF).
Industry insiders believe the unit will also strengthen Nigeria’s chances of attracting more foreign direct investment (FDI), as investors often prioritize countries with strong compliance and regulatory frameworks.
The CBN has reiterated its commitment to working closely with banks, fintechs, and other financial institutions to ensure seamless compliance with its guidelines.
“We look forward to continued cooperation from all institutions to ensure a smooth transition and uphold the highest standards of compliance with regulatory requirements,” the bank stated.
With Nigeria facing mounting pressure from global regulatory standards and rising domestic financial crimes, the CBN’s move to create a Compliance Department comes at a crucial time.
If effectively implemented, the unit could not only curb financial crimes but also position Nigeria as a trusted financial hub in Africa.
As the department begins full-scale operations, all eyes will be on how effectively it tackles persistent challenges such as money laundering, cyber threats, and governance lapses in the nation’s banking system.