Agriculture

Zero Tolerance: CBN Goes Tough on Banks to ensure Transparency

BY BONNY AMADI

•Sets up Compliance Dept.’

With the recent sanctioning of 15 de- posit money banks in Nigeria for not complying with directive to ensure availability of dispensable cash in all cash points, the Nigerian apex bank has gone step further to put banks in the country on their toes with compliance.

Olayemi Cardoso, governor of the Central Bank of Nigeria (CBN), says the bank has set up a compliance department to ensure transparency in the financial sector.

Cardoso spoke on Thursday at the launch of the 2025 macroeconomic outlook of the Nigerian Economic Summit Group (NESG).

In his keynote address, Cardoso said the department will begin operations by the end of February.

“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 reliable financial sector that can drive Nigeria’s economic growth and development,” the CBN governor said.

“This department will be inward-facing and outward-facing as well. The department will be functional by the end of February, so I would advise you all to stay tuned.”

Cardoso said the introduction of the foreign exchange (FX) code, the electronic foreign exchange matching system, and the foreign currency disclosure, de- posit repatriation, and investment scheme, would enhance market efficiency and transparency.

On January 22, the CBN announced that it will launch the Nigerian FX code as a guideline to “promote the conduct” of authorised dealers in the market on January 28.

The apex bank, on October 3, 2024, also announced the introduction of an electronic FX matching system.

According to Cardoso, the initiatives were deployed to increase transparency and efficiency of the FX market, reduce the disparity between the bureau de change (BDC), and official exchange rates, and foster stability.

“The CBN will shortly be launching the foreign exchange code, which will offer clear directives on the expectations of market participants, ensuring that the market operates in a fair and transparent manner,” he said.

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