The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has announced plans to establish a Compliance Department within the apex bank.
The department, which is set to commence operations by the end of February 2025, aims to address past challenges, align with global best practices, and enhance the transparency and resilience of Nigeria’s financial sector.
Cardoso made this announcement on Thursday while delivering the keynote address at the launch of the 2025 macroeconomic outlook organized by the Nigerian Economic Summit Group.
“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 and resilient financial sector that can drive Nigeria’s economic growth and development,” Cardoso explained.
He elaborated that the department would have dual responsibilities, functioning both internally within the CBN and externally to ensure adherence to regulatory frameworks across the financial system.
“This department will be inward-facing and outward-facing as well. The department will be functional by the end of February, so I advise you to stay tuned,” he added.
In addition to the creation of the Compliance Department, the CBN Governor highlighted plans to launch a foreign exchange code aimed at providing clear guidelines for market participants.
This initiative is expected to foster a fair and transparent operating environment in the foreign exchange market.
“We will also prioritize exchange rate stability to foster a more competitive business environment, encourage the inflow of foreign investment, and, in addition, support fiscal operations in critical sectors of the economy,” Cardoso stated.
He emphasized that the apex bank remains committed to strengthening financial institutions to better support the real sector of the economy.
The announcement marks a significant step in the CBN’s efforts to rebuild trust in Nigeria’s financial system following recent concerns about regulatory compliance and foreign exchange market irregularities.
It is anticipated that the Compliance Department’s creation will resolve these problems while encouraging accountability and sound governance.
The action has been praised by financial observers, who point out that it shows initiative in setting up the Nigerian banking industry for expansion.
With clearer regulations and a strong focus on compliance, the CBN aims to create an environment conducive to investment, job creation and economic stability.
As the February launch date approaches, stakeholders in the financial and business communities will be closely watching the implementation of these initiatives, which have the potential to significantly impact Nigeria’s economic trajectory.
