CBN strengthens financial oversight to protect Nigeria’s economy

The Central Bank of Nigeria (CBN) has reinforced its commitment to ensuring a secure and trustworthy financial system by tightening regulatory measures and improving risk management within Nigerian financial institutions.

At a training workshop held on February 28, 2025, in Lagos, which was organised in partnership with Citi, Ms. Shola Phillips, Special Adviser to the CBN Governor on Compliance, stressed the importance of adhering to international banking standards to maintain trust in Nigeria’s financial sector.

“Regulators expect financial institutions to have flexible, risk-based anti-money laundering (AML) and counter-financing of terrorism (CFT) programmes that can adapt to changes in the financial environment. It’s crucial that institutions remain ahead of regulatory developments and use modern compliance tools to meet these expectations,” Phillips said.

The workshop, which saw participation from compliance officers, trade operations specialists, and correspondent banking teams across various financial institutions, offered vital insights into global regulatory trends, new financial risks, and strategies to sustain international banking partnerships.

Siobhan Ni Ealaithe, Managing Director of Citi’s Correspondent Banking Group, emphasised the importance of strong governance in managing risks. She also highlighted the need for practices like Know Your Customer (KYC), Know Your Business (KYB), and Know Your Transaction (KYT) to prevent illegal financial activities.

Stephanie Bailey, Head of EMEA AML Risk Management for Foreign Correspondent Banking, shared alarming figures about financial crime, stating that more than $3 trillion in illicit money flows through the global financial system every year. She called on institutions to improve their due diligence, use technology to assess risks, and maintain transparency in all transactions.

The event supports CBN Governor Olayemi Cardoso’s goal to enhance regulatory practices and strengthen Nigeria’s financial system. Governor Cardoso has consistently said, “A strong financial system is built on trust, and trust is earned through integrity and compliance. The CBN will continue to set high regulatory standards to protect Nigeria’s financial ecosystem and ensure it aligns with global best practices.”

Through promoting a strong compliance culture and improving risk management, the CBN aims to protect Nigeria’s financial sector and build its resilience and credibility both at home and internationally.