In a decisive move to bolster transparency and accountability in Nigeria’s financial sector, the Central Bank of Nigeria (CBN) has announced the establishment of a new Compliance Department.

CBN Governor Olayemi Cardoso disclosed this development on Thursday during the launch of the Nigerian Economic Summit Group’s 2025 Macroeconomic Outlook. The new department is set to become operational by the end of February 2025, marking a significant step in the apex bank’s broader agenda to restore confidence in the nation’s banking industry.

Building Confidence Through Compliance
Speaking at the event, Cardoso emphasized the transformative role of the Compliance Department, stating:
“The CBN has taken the transformative step of setting up a compliance department with the objective of addressing past challenges, aligning with global standards, and building a more transparent financial sector that can drive Nigeria’s economic growth and development. This department will be inward-facing and outward-facing as well. The department will be functional by the end of February.”

The department aims to address systemic challenges while ensuring adherence to global compliance standards. It will also play a dual role in overseeing internal banking operations and promoting external stakeholder engagement.

Complementary Regulatory Measures
The announcement coincides with the CBN’s introduction of the Nigerian Foreign Exchange (FX) Code, designed to promote ethical practices in the nation’s FX market. The FX Code provides a framework for authorized dealers, ensuring that financial institutions uphold professionalism and integrity in their transactions.

The CBN’s regulatory initiatives underscore its commitment to fostering a resilient and transparent financial ecosystem capable of supporting Nigeria’s economic development.

Strategic Priorities for 2025
Governor Cardoso outlined additional priorities for 2025, including:

Exchange Rate Stability: Promoting a competitive business environment and encouraging foreign investment inflows.
Sectoral Support: Strengthening financial institutions to enhance their capacity to support the real economy, particularly critical sectors.
Collaboration: Advocating for stronger partnerships between monetary and fiscal authorities and private sector stakeholders to ensure a stable macroeconomic environment.

Cardoso noted that collaboration across sectors will be key to achieving these objectives:
“This joint effort is critical to fostering a stable macroeconomic environment,” he said.

Conclusion
The establishment of the Compliance Department reflects the CBN’s proactive stance on regulatory transparency and financial stability. As the apex bank rolls out its 2025 agenda, these initiatives aim to create a more robust and trustworthy financial sector, aligning with global best practices and driving sustainable economic growth.