In a move aimed at enhancing regulatory oversight and tackling emerging threats within Nigeria’s financial system, the Central Bank of Nigeria (CBN) has announced the establishment of a new Compliance Department.
The department, which was created in the first quarter of 2025 and became operational in Q2, is tasked with strengthening the CBN’s supervisory role over non-prudential risks, including financial crime, cybersecurity, and environmental, social, and governance (ESG) standards.
In a circular sent to regulated institutions on Thursday, the apex bank said the development is part of a wider structural reform designed to “embed regulatory effectiveness, clarify institutional responsibilities, and maintain focused oversight of evolving risks.”
What the Compliance Department Will Oversee
According to the CBN, the new department will assume key responsibilities across four strategic areas:
- Financial Crime Supervision
Oversight of compliance with regulations on anti-money laundering (AML), counter-terrorism financing (CFT), counter-proliferation financing (CPF), and sanctions enforcement. - Market Conduct Supervision
Monitoring of disclosure standards, complaint resolution mechanisms, and advertising practices across financial institutions. - Enterprise Security Supervision
Regulation and oversight of institutions’ cybersecurity frameworks, data protection practices, and third-party risk management systems. - Corporate Governance and ESG Oversight
Focused supervision of board performance, corporate governance structures, and adherence to Environmental, Social, and Governance (ESG) principles.
Reporting and Communication
The CBN advised that all regulatory submissions, reports, and related correspondence on these matters should now be directed to the Director of the Compliance Department through the established regulatory communication channels.
Financial institutions will be provided with detailed instructions regarding new points of contact and procedural guidelines for submitting reports and inquiries.
“High Standards Must Be Maintained” – CBN
The apex bank expressed confidence that the new department will enhance the regulatory landscape by promoting compliance, transparency, and operational resilience across Nigeria’s financial ecosystem.
“We look forward to continued cooperation from all regulated entities,” the statement said, “to ensure a smooth transition and uphold the highest standards of regulatory compliance.”
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