34 Institutions Face Sanctions Over Forex Rule Violations

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The Central Bank of Nigeria has identified 34 institutions that breached foreign exchange regulations. The institutions include banks, credit bureaux, and other financial providers.

### Sanctions Recommended

Sanctions are being recommended against the 34 institutions for violating foreign exchange regulations. The sanctions come after a routine examination of the institutions' activities.

### Risk Assets Assessment Examination

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.

### Upgraded Credit Assessment and Analysis System

To improve oversight, the apex bank upgraded its Credit Assessment and Analysis System to an enterprise version in 2025. This allows for more efficient risk assessment and analysis.

The CBN has also digitized 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. This has reduced processing time, improved operational efficiency, enhanced transparency, and strengthened governance in supervisory approvals.

### Key Facts

  • 34 institutions faced sanctions over foreign exchange rule violations
  • Sanctions were recommended after a routine examination of the institutions' activities
  • Risk Assets Assessment Examination of all banks was conducted in February 2025
  • The CBN upgraded its Credit Assessment and Analysis System to an enterprise version in 2025
  • The Licensing and Other Requests Approval Portal was launched on 6 October 2025

The CBN's actions reflect a continued effort to maintain the stability and soundness of Nigeria's financial system. This is achieved through continuous monitoring of regulated institutions.

### CBN's Supervisory Activities

The CBN 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. The CBN also 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.

### Sanctions Process

The process for enforcing sanctions against institutions found to be in breach of foreign exchange regulations remains unclear. It is however expected that the CBN will continue to exercise its authority over regulated institutions to ensure compliance with existing rules.

### Regulatory Oversight

Regulatory oversight of the financial sector is crucial in maintaining stability and preventing economic instability. The CBN's actions demonstrate a commitment to upholding this responsibility and maintaining the integrity of the financial system.

The impact of the CBN's actions on the financial sector and the broader economy remains to be seen. As the regulatory environment continues to evolve, it is likely that more institutions will come under scrutiny for non-compliance with existing rules.