The Central Bank of Nigeria (CBN) has created a dedicated Compliance Department to boost regulatory oversight and tighten banking sector surveillance across Nigeria’s financial services ecosystem.
The move was communicated in letter “/DIR/PUB/CIR/001/002,” dated September 4, 2025, to all banks, payment service banks, and other financial institutions as defined under BOFIA 2020.
The letter, signed by Olubunmi Ayodele-Oni for the Director of the Compliance Department, formalizes the new structure and reporting lines.
CBN also disclosed that the department was established in Q1 2025 and commenced operations in Q2, at which point non-prudential risk supervision was reassigned to the new unit.
According to the apex bank, the change forms part of broader structural reforms designed to consolidate regulatory effectiveness and clarify institutional responsibilities.
It also aims to strengthen oversight of non-prudential and emerging risks within the financial system, improving consistency and accountability in supervision.
The Compliance Department now leads financial crime supervision, including anti-money laundering (AML), counter-financing of terrorism (CFT), counter-proliferation financing (CPF), and sanctions compliance.
By centralizing these functions, the CBN is signaling a more coordinated approach to financial integrity and sanctions risk management.
The department will oversee market conduct supervision covering disclosure practices, complaint management frameworks, and advertising standards.
It will also direct enterprise security supervision across cybersecurity, data protection, and third-party risk management, elevating operational resilience and consumer protection.
Corporate governance and ESG supervision, spanning board effectiveness and environmental, social, and governance oversight, also fall under its mandate.
All regulatory reports, correspondence, and inquiries in these areas should now be addressed to the Director, Compliance Department via established channels, with specific contact points and submission procedures to follow, and the CBN thanked institutions for their cooperation.
