34 institutions face sanctions over forex rule violations

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The Central Bank of Nigeria uncovered foreign exchange regulatory breaches by some authorised dealers after conducting a routine examination of 34 institutions, according to its 2025 Annual Report and Statement of Accounts.

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The review, which covered activities between 1 April 2024 and 31 March 2025, assessed compliance with FX regulations, monitored the use of FX for eligible transactions and tracked FX flows from key sources. Although the report said most authorised dealers complied with existing rules, it noted that the exercise identified a number of infractions for which sanctions were recommended.

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The FX assessment formed part of the apex bank’s risk-based supervisory framework designed to safeguard the stability and soundness of Nigeria’s financial system through continuous monitoring of regulated institutions.

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In a separate supervisory exercise conducted jointly with the Nigeria Deposit Insurance Corporation, the CBN carried out a Risk Assets Assessment Examination of all banks in February 2025. The exercise evaluated the quality of banks’ loan portfolios and determined whether provisions for loan losses were sufficient ahead of the approval of their 2024 financial statements.

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The regulator expanded its supervisory activities between August and September 2025, when it conducted joint risk-based examinations of 17 banks with “moderate” and “low” composite risk ratings, alongside three financial holding companies, using their risk profiles as of 30 June 2025.

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The report also disclosed that the CBN examined three credit bureaux during the period and undertook routine inspections of some Nigerian banks’ foreign subsidiaries in collaboration with supervisory authorities in their host countries.

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To improve oversight, the apex bank upgraded its Credit Assessment and Analysis System to an enterprise version in 2025.

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The CBN also digitised part of its supervisory approval process with the launch of the Licensing and Other Requests Approval Portal on 6 October 2025. The automated platform handles approvals relating to employee clearance, as well as the appointment and promotion of senior management and board members in banks.

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According to the report, the deployment of the portal has reduced processing time, improved operational efficiency, enhanced transparency and strengthened governance in supervisory approvals.

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