The Central Bank of Nigeria (CBN) has uncovered foreign exchange regulatory breaches by some authorised dealers following a comprehensive review of 34 institutions as part of efforts to strengthen compliance within the financial sector.
The findings were contained in the apex bank’s 2025 Annual Report and Statement of Accounts, which revealed that the examination covered foreign exchange activities carried out between April 1, 2024, and March 31, 2025.
According to the report, the review focused on compliance with existing FX regulations, the utilisation of foreign exchange for approved transactions, and the monitoring of inflows and outflows from major sources.
While the CBN noted that most authorised dealers complied with regulatory requirements, it said some institutions were found to have breached established guidelines, leading to recommendations for appropriate sanctions.
The examination was conducted under the bank’s risk-based supervisory framework, which is designed to identify potential weaknesses in regulated institutions and protect the stability of Nigeria’s financial system through continuous monitoring.
In another supervisory exercise carried out alongside the Nigeria Deposit Insurance Corporation (NDIC), the CBN conducted a Risk Assets Assessment Examination of all banks in February 2025.
The assessment reviewed the quality of banks’ credit portfolios and evaluated whether lenders had made adequate provisions for possible loan losses before their 2024 financial statements were approved.
The regulator also intensified its monitoring activities between August and September 2025, conducting joint risk-based examinations of 17 banks classified under “moderate” and “low” composite risk categories, as well as three financial holding companies.
The exercise was based on the institutions’ risk profiles as of June 30, 2025.
The report further disclosed that the CBN reviewed the operations of three credit bureaux during the period and carried out routine inspections of some Nigerian banks’ foreign subsidiaries in partnership with regulators in their host countries.
As part of measures to improve supervisory efficiency, the apex bank upgraded its Credit Assessment and Analysis System to an enterprise-level platform in 2025.
The CBN also introduced the Licensing and Other Requests Approval Portal on October 6, 2025, as part of efforts to digitise supervisory approval processes.
The automated platform manages approvals relating to employee clearances, as well as appointments and promotions involving senior executives and board members of banks.
According to the report, the digital system has helped reduce approval timelines, improve efficiency, increase transparency and strengthen corporate governance within the banking sector.
