Nigeria: CBN Directs Financial Institutions to Channel Regulatory Reports to Compliance Department

The Central Bank of Nigeria (CBN) has issued a directive requiring all financial institutions to submit regulatory reports, correspondence, and related inquiries through its newly established Compliance Department.

In a circular addressed to banks, Payment Service Banks (PSBs), and Other Financial Institutions (OFIs), the apex bank emphasized that the Compliance Department, created in the first quarter of 2025 and operational since the second quarter, now oversees non-prudential risk areas.

Olubunmi Ayodele-Oni, Director of the Compliance Department, who signed the letter, explained that the restructuring reflects CBN’s efforts to strengthen regulatory effectiveness, streamline supervisory responsibilities, and enhance oversight of emerging risks.

The Department’s mandate covers four key areas:

• Financial Crime Supervision: including Anti-Money Laundering/Combating the Financing of Terrorism/Counter-Proliferation Financing (AML/CFT/CPF) and sanctions compliance.

• Market Conduct Supervision: covering disclosure practices, complaints management, and advertising standards.

• Enterprise Security Supervision: including cybersecurity, data protection, and third-party risk management.

• Corporate Governance and ESG Supervision: focusing on board effectiveness and environmental, social, and governance (ESG) oversight.

Going forward, all regulatory submissions and related communications must be directed to the Director of the Compliance Department through designated communication channels. The CBN noted that institutions will receive further details on specific contact points and submission procedures.

The apex bank expressed confidence that the reform will ensure smoother regulatory engagement and reinforce adherence to compliance standards across Nigeria’s financial sector.