CBN sets up compliance department to ensure transparency in financial sector

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, deposit 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.

“We will also prioritise exchange stability in order to foster a more competitive business environment and encourage the inflow of foreign investments and, in addition, support fiscal operations.”

Cardoso said the bank will strengthen its mechanisms to constantly monitor market participants, ensuring that all those who are in the market are subjected to the best practices while those who fail to conform “will be appropriately dealt with”.

The CBN governor expressed excitement that the efforts to stabilise the FX markets are yielding positive results, saying the bank will continue to put in the work.