CBN Finds FX Infractions in 34 Banks After Annual Review, Recommends Penalties
- The CBN has identified foreign exchange infractions among authorised dealers after reviewing 34 financial institutions in its 2025 Annual Report
- The apex bank conducted joint examinations with the NDIC covering loan portfolios and risk ratings across 17 banks and 3 financial holding companies
- CBN also upgraded two key supervisory platforms to improve processing speed, transparency, and governance oversight across the banking sector
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The Central Bank of Nigeria (CBN) has uncovered foreign exchange infractions among authorised dealers following a review of 34 financial institutions, even as it found that banks were broadly following existing FX rules.
The findings were published in the CBN's 2025 Annual Report and Statement of Accounts, which covered supervisory activities carried out to strengthen compliance and protect the stability of Nigeria's financial system.
Source: UGC
The foreign exchange examination assessed compliance across the period from April 1, 2024, to March 31, 2025. Examiners looked at how banks adhered to FX regulations, whether foreign exchange was used for eligible transactions, and how funds moved through major sources.
The report said:
"Authorised dealers were broadly compliant with existing FX regulations, while some infractions were observed, and appropriate penalties were recommended."
The CBN described the review as part of a risk-based supervisory framework aimed at maintaining a safe and sound financial system.
CBN and NDIC Conduct Joint Bank Examinations
Beyond FX oversight, the CBN carried out wider examinations of the banking sector together with the Nigeria Deposit Insurance Corporation (NDIC).
In February 2025, the two regulators ran a Joint Risk Assets Assessment Examination covering all banks to check the quality of loan portfolios and confirm whether loan loss provisions were sufficient for approving 2024 financial statements, BusinessDay reports.
Between August and September 2025, the CBN and NDIC also conducted Risk-Based Examinations on 17 banks with composite risk ratings of "Moderate" and "Low," along with three financial holding companies, using ratings as at June 30, 2025 as the basis for selection.
The apex bank separately carried out risk-based examinations of three credit bureaus and conducted routine inspections of selected Nigerian banks' foreign subsidiaries, working alongside supervisors in the host countries.
CBN Upgrades Key Supervisory Tools
To sharpen its oversight capabilities, the CBN upgraded its Credit Assessment and Analysis System (CAAS) to an enterprise version during the review period.
The upgraded platform processes data faster, produces better reports, and can handle datasets of more than one million records.
The CBN said it also improved the objective classification of credit exposures and was deployed during its 2025 Risk-Based and Risk Assets examinations.
Source: Getty Images
On October 6, 2025, the bank launched its Licensing and Other Requests Approval Portal (LARP), an automated system that handles approvals for staff clearances, senior management appointments, promotions, and board member changes.
The CBN said the portal has cut processing times, raised transparency, and strengthened governance across its supervisory approvals process.
BDCs risk suspension as CBN enforces new 24-hour rule
Earlier, Legit.ng reported that the Central Bank of Nigeria (CBN) has ordered Bureau De Change (BDC) operators to return any foreign exchange purchased through the Nigerian Foreign Exchange Market (NFEM) that remains unused within 24 hours of the expiry of the approved utilisation period.
The order is contained in the apex bank's Regulatory Guidance on the Purchase of Foreign Exchange by BDCs through Authorised Dealer Banks in the NFEM, which sets out a stricter compliance framework for how operators may access and handle foreign currency obtained from the official market.
Operators who fail to meet this obligation face regulatory sanctions,
Source: Legit.ng
