In a significant shift in Nigeria’s banking landscape, the Central Bank of Nigeria (CBN) has announced a new directive targeting chronic loan defaulters and large-ticket obligors with non-performing loans. This development marks a decisive moment in the CBN’s approach to managing the financial system, which has been plagued by issues of delinquency and poor repayment culture for years.

Prior to this announcement, the expectation within the banking sector was that regulatory forbearance would continue, allowing borrowers with significant outstanding debts to maintain access to banking services. However, the CBN’s recent actions indicate a clear departure from this leniency. The new measures restrict these defaulters from accessing fresh credit and essential banking instruments, effectively blacklisting them from the financial system.

The immediate effects of this policy are profound. The CBN aims to enforce credit discipline and safeguard the financial system by instilling a culture of repayment among high-profile borrowers. Olayemi Cardoso, the CBN Governor, emphasized the bank’s zero tolerance for violations of corporate governance, stating, “Our stance on corporate governance is unequivocal: zero tolerance for violations.” This statement underscores the CBN’s commitment to accountability and compliance within the banking sector.

As a result of these changes, the CBN has signaled that the era of regulatory forbearance for delinquent borrowers is over. The bank is pivoting toward an orthodox monetary policy focused on price stability, which is expected to attract new capital into the banking sector. Reports indicate that the sector has already attracted N4.61 trillion in new capital, highlighting the potential positive impact of these stringent measures.

Experts believe that this shift will not only enhance the liquidity of banks but also improve the safety of deposits. By tightening supervision and elevating compliance standards, the CBN is reinforcing the integrity of the financial system. Cardoso noted, “By ending years of regulatory forbearance, we have reinforced accountability, tightened supervision, and elevated compliance standards across the sector.” This perspective reflects a growing consensus that stricter regulations may ultimately benefit the banking industry and its stakeholders.

However, the implications for those blacklisted are severe. Individuals or entities classified as chronic defaulters will face significant challenges in accessing financial services, which could hinder their ability to conduct business and manage their financial obligations. The CBN’s actions may lead to a more cautious lending environment, as banks reassess their risk exposure to high-profile borrowers.

As the CBN implements these measures, the long-term effects on the banking sector and the broader economy remain to be seen. While the immediate goal is to enhance credit discipline, the potential for increased financial stability and growth could reshape Nigeria’s economic landscape. Details remain unconfirmed regarding the specific criteria for blacklisting and the process for borrowers to regain access to banking services.

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The CBN’s directive aims to enhance transparency and deepen liquidity in the official foreign exchange market. By requiring IMTOs to open naira settlement accounts, the central bank seeks to ensure that all remittance transactions are processed through these accounts, thereby improving traceability and monitoring of funds. “This directive takes effect from May 1, 2026. Please note and ensure compliance,” the CBN emphasized.

Prior to this announcement, IMTO inflows into Nigeria had experienced a notable decline, with a reported 11.78% drop in the first half of 2025 compared to the same period in 2024. Total IMTO receipts during this timeframe amounted to $2.07 billion, down from $2.34 billion in the corresponding period of the previous year. This decline, amounting to $275.93 million, highlighted the need for regulatory changes to stabilize the remittance market.

Under the new regulations, IMTOs will be permitted to operate multiple naira settlement accounts across different authorised dealer banks. This flexibility is expected to facilitate smoother transactions and enhance the overall efficiency of the remittance process. Furthermore, IMTOs are required to maintain detailed transaction records for regulatory review, ensuring compliance with anti-money laundering and counter-terrorism financing standards.

The CBN has also instructed IMTOs to reference real-time rates from Bloomberg BMatch for pricing transactions, a move designed to align the pricing of remittances with current market conditions. “The measure is aimed at enhancing diaspora remittances, strengthening transparency, traceability, and effective monitoring of all transactions,” the CBN noted.

This directive is part of the CBN’s ongoing efforts to stabilize the foreign exchange market and curb leakages into the parallel market. The central bank’s proactive approach reflects its commitment to improving the financial landscape in Nigeria, particularly in the context of international money transfers.

As the implementation date approaches, stakeholders in the remittance sector are expected to adapt to these new requirements. The CBN’s move is seen as a critical step towards fostering a more transparent and efficient financial environment for both IMTOs and their customers.

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On March 12, 2026, the Central Bank of Nigeria (CBN) announced a significant change in the regulations governing dormant accounts. The new directive, signed by Rita Sike, Director of Financial Policy and Regulation, eliminates the mandatory requirement for customers to present affidavits when seeking to reactivate dormant accounts.

This decision comes as a response to representations from various stakeholders who have advocated for a more accessible process for individuals wishing to reclaim their dormant funds. The CBN’s move aims to simplify access while ensuring that necessary safeguards remain in place.

The revised regulations specifically apply to dormant accounts that have not yet been transferred to the Unclaimed Balances Trust Fund (UBTF) Pool Account. For accounts that have already been transferred, the requirement for affidavits remains in effect, highlighting a distinction in the treatment of dormant accounts based on their status.

In addition to the removal of the affidavit requirement, the CBN has mandated that banks and financial institutions implement enhanced due diligence when handling requests for dormant account reactivation. This includes robust measures to verify the accuracy and authenticity of customer information during the reactivation process.

Furthermore, banks are now required to publish details of dormant accounts and unclaimed balances on their websites and in at least two national newspapers annually. This disclosure must include the names of account holders, account types, bank names, and branch addresses, ensuring transparency and compliance with the Nigeria Data Protection Act.

The new directive supersedes an earlier circular issued on February 17, 2025, and takes immediate effect, indicating the CBN’s commitment to adapting its policies in response to the evolving needs of the banking sector.

Rita Sike stated, “The requirement under Section 8.0(ii) for the mandatory use of affidavits in the reactivation of dormant accounts has been rescinded.” She further emphasized that despite this change, banks and other financial institutions must continue to apply enhanced due diligence to safeguard customer information during the reactivation process.

This regulatory update reflects the CBN’s ongoing efforts to balance customer accessibility with the need for financial security and integrity in the banking system.

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In a significant regulatory update, the Central Bank of Nigeria (CBN) announced on March 12, 2026, that it has removed the mandatory requirement for customers to present affidavits when seeking to reactivate dormant accounts. This decision, disclosed in a circular signed by Rita Sike, the Director of Financial Policy and Regulation, aims to simplify the process for customers while ensuring that necessary safeguards remain in place.

The removal of the affidavit requirement specifically applies to dormant accounts that have not yet been transferred to the Unclaimed Balances Trust Fund (UBTF) Pool Account. However, it is important to note that affidavits will still be mandatory for funds that have already been transferred to the UBTF. This distinction is crucial for customers looking to access their dormant funds.

As part of the new regulations, banks and financial institutions are required to apply enhanced due diligence when handling requests for dormant account reactivation. This means that while the affidavit requirement has been rescinded, financial institutions must implement robust safeguards to verify the accuracy and authenticity of customer information during the reactivation process. Rita Sike emphasized, “The requirement under Section 8.0(ii) for the mandatory use of affidavits in the reactivation of dormant accounts has been rescinded.”

Additionally, banks are now mandated to publish details of dormant accounts and unclaimed balances on their websites and in at least two national newspapers annually. The information disclosed must include account holder names, account type, bank name, and branch address. This transparency is intended to help customers identify and reclaim their dormant funds more easily.

The disclosure requirements align with the Nigeria Data Protection Act and are legally justified under the Banks and Other Financial Institutions Act (BOFIA) 2020. This regulatory framework aims to protect customer data while facilitating access to dormant funds.

This update supersedes an earlier circular issued on February 17, 2025, and takes immediate effect. The CBN’s decision follows representations from various stakeholders, highlighting the need for a more accessible process for customers seeking to reactivate dormant accounts. The move is seen as a step towards enhancing customer service within the banking sector.

Initial reactions to the new regulations have been mixed, with some stakeholders welcoming the changes as a positive development for customer access to funds. However, there are concerns regarding the implementation of enhanced due diligence measures and how effectively banks will manage this new responsibility. As the financial landscape evolves, the CBN’s approach to dormant accounts will be closely monitored by both customers and financial institutions alike.

Overall, the CBN’s revised regulations reflect a commitment to balancing customer accessibility with the necessary safeguards to protect financial integrity. The banking sector is now tasked with adapting to these changes while ensuring compliance with the new directives.

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In an effort to bolster security in the rapidly evolving digital financial landscape, the Central Bank of Nigeria (CBN) announced new rules governing instant payment systems. These regulations are set to take effect on July 1, 2026, and aim to address rising concerns about fraud in mobile money transfers and online banking.

On March 12, 2026, CBN officials, including Musa Jimoh, outlined the key aspects of the new rules. Among the significant changes, customers will have the option to turn instant payments on or off at any time, providing them with greater control over their financial transactions. Additionally, new customers will have instant payments enabled by default, ensuring they can quickly engage with digital banking services.

To enhance security, banks are mandated to implement Multi-Factor Authentication (MFA) for payment settings. This requirement is designed to protect users from unauthorized access and fraudulent activities. Furthermore, the CBN has set daily spending limits that allow personal accounts to transact up to ₦25 million, while business accounts can handle up to ₦250 million, contingent upon successful risk assessments.

As part of the new regulations, the CBN requires banks to monitor unusual money movements using advanced computer systems. This initiative aims to detect and prevent potential fraud before it occurs. Additionally, the rules stipulate that ATMs must be deployed at a ratio of one for every 7,500 payment cards issued, ensuring adequate access to cash for users.

Another critical aspect of the new regulations is the handling of failed on-us ATM transactions. The CBN has mandated that these transactions must be reversed instantly, with manual reversals not exceeding 24 hours. This measure is expected to enhance customer satisfaction and trust in digital banking services.

In a move to simplify access to dormant accounts, the CBN has removed the affidavit requirement for reactivating such accounts. This change aims to eliminate unnecessary delays and administrative hurdles that previously hindered customers from reclaiming their funds. Banks are now permitted to accept dormant account reactivation requests through alternative digital channels, streamlining the process further.

Moreover, the CBN has strengthened disclosure requirements for dormant accounts and unclaimed balances, ensuring that customers are better informed about their financial status. New mobile banking users will initially face a transfer limit of ₦20,000 for the first 24 hours, allowing banks to assess risk before granting full access to their accounts.

These developments are significant for both consumers and financial institutions in Nigeria. By implementing these rules, the CBN aims to strike a balance between facilitating easier access to funds and maintaining the integrity of the financial system. As the digital banking landscape continues to evolve, these regulations will play a crucial role in shaping the future of financial transactions in Nigeria.

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Before this recent development, there was an expectation for continuity in the leadership of the Central Bank of Nigeria (CBN), particularly following the appointment of Mr. Bala Bello as Special Adviser to the President on Political Economy. This transition left a vacancy for the Deputy Governor position, prompting speculation about potential nominees.

Decisive Moment

President Bola Ahmed Tinubu has now nominated Lamido Abubakar Yuguda for the role of Deputy Governor of the CBN, a decision that is subject to Senate confirmation. This nomination aligns with Section 8(1) of the Central Bank of Nigeria Act, 2007, ensuring that the appointment follows the legal framework established for such roles.

Profile of Lamido Abubakar Yuguda

Yuguda brings a wealth of experience to the position, having served as the Director-General of the Securities and Exchange Commission from 2020 until 2024. His educational background includes a B.Sc. in Accountancy from Ahmadu Bello University, obtained in 1983, and a master’s degree in Money, Banking and Finance from the University of Birmingham in 1991.

Beginning his career in 1984 at the Central Bank of Nigeria, Yuguda has held various significant roles, including working as an economist at the International Monetary Fund from 1997 to 2001. He retired from the CBN in 2016 after serving as Director of the Reserve Management Department for six years.

Immediate Effects of the Nomination

With this nomination, President Tinubu has urged Yuguda to bring renewed dedication, professionalism, and commitment to the responsibilities of the office, emphasizing the importance of stability and growth in Nigeria’s economy. If confirmed by the Senate, Yuguda is expected to leverage his extensive experience in central banking, international finance, and capital market regulation.

Expert Perspective

Experts suggest that Yuguda’s background positions him well to contribute effectively to the CBN’s ongoing policies aimed at strengthening monetary stability and supporting economic growth. His previous roles and expertise in finance are seen as critical assets for the challenges ahead.

Details remain unconfirmed regarding the timeline for the Senate’s confirmation process and any potential challenges that may arise during this period. However, the nomination marks a significant step in the ongoing evolution of Nigeria’s financial leadership.

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The Central Bank of Nigeria (CBN) has recently announced new measures to tighten cheque rules as part of its ongoing efforts to enhance the security of financial transactions and reduce the incidence of fraud across the banking sector. This move is particularly significant given the increasing reports of cheque fraud that have plagued banks and financial institutions in Nigeria.

Details of the New Regulations

In a circular released on October 15, 2023, the CBN outlined specific guidelines that all banks must adhere to regarding cheque issuance and handling. These measures include the mandatory use of cheques with advanced security features such as watermarks, holograms, and special inks to deter counterfeit attempts. Additionally, the CBN has mandated that banks implement stricter verification processes before honouring cheque withdrawals, including the use of biometric identification to confirm the identity of cheque issuers.

The central bank highlighted that the new measures are designed not only to protect financial institutions but also to safeguard the interests of customers who rely on cheque transactions for their business and personal dealings. Recent statistics indicate that cheque fraud cases have surged by 30% in the last year alone, prompting urgent action from the CBN.

Impact and Feedback from Stakeholders

The response to this regulatory change has been mixed. Some financial analysts believe that the new rules will greatly enhance trust in cheque transactions, ensuring a more secure environment for banking operations. On the other hand, certain bank officials raised concerns about the implementation costs associated with upgrading systems and training staff to comply with the new regulations.

Consumer advocacy groups have largely applauded the CBN’s initiative, arguing that it is a necessary step toward increasing customer confidence in cheque payments amidst widespread concerns over fraud. They emphasize that, while there may be short-term inconveniences, the long-term benefits for consumers and banks alike will be significant.

Conclusion

The CBN’s decision to tighten cheque rules signifies a proactive approach to combating financial fraud in Nigeria. As these regulations take effect, banks will need to adapt to the new requirements while customers must stay informed about the changes affecting their transactions. Ultimately, these measures are expected to bolster the integrity of the banking system, reduce the risk of fraud, and provide a safer avenue for conducting financial transactions.

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The Central Bank of Nigeria (CBN) plays a pivotal role in shaping the fintech landscape in Nigeria. With the rapid growth of technology-driven financial services, understanding the bank’s policies becomes essential for stakeholders both locally and internationally. Moreover, the reliance on foreign investments highlights the dynamic relationship between domestic initiatives and global markets, making this topic particularly relevant in today’s economic climate.

The Rise of Fintech in Nigeria

In recent years, Nigeria has emerged as a hub for fintech innovation in Africa. With over 200 fintech companies, including market leaders like Flutterwave and Paystack, the sector is revolutionizing how financial transactions are conducted across the country. According to a report by McKinsey, fintech can potentially contribute over $3 billion to Nigeria’s GDP by 2025, further emphasizing the need for effective regulatory frameworks by CBN.

CBN’s Supportive Regulations

To encourage innovation while ensuring consumer protection, the CBN introduced several initiatives, such as the regulatory sandbox, which allows fintech startups to test their products under regulatory supervision. Furthermore, the CBN has been active in fostering collaborations between fintech firms and traditional banks, aiming to enhance financial inclusion across the country.

Foreign Investment and Its Impact

Despite a burgeoning local fintech scene, Nigeria’s technology ecosystem heavily relies on foreign investments, primarily from venture capital firms and tech giants. For example, Nigerian fintech startups raised approximately $1.5 billion in funding in 2021 alone, with a significant portion coming from foreign investors. This reliance on outside capital highlights the challenges faced by local entrepreneurs in securing financing and the need for a more robust domestic investment framework.

Challenges and Future Prospects

While the CBN’s supportive stance has brought advancements in the fintech sector, challenges such as regulatory compliance, currency volatility, and dependence on foreign capital persist. Moving forward, it is crucial for stakeholders to engage with CBN to create a sustainable model that encourages local investments while continuing to attract foreign funding.

Conclusion

In conclusion, the interaction between CBN’s policies and Nigeria’s fintech industry remains vital for economic growth. As the reliance on international investments continues, it is imperative for the CBN to not only regulate but also innovate financing solutions that empower local entrepreneurs, ensuring the sustainability and competitiveness of the Nigerian fintech ecosystem in the global market.

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Non-interest banking has gained significant traction in Nigeria, sparking interest among stakeholders in the financial sector. This system aligns with Islamic principles and offers an alternative to conventional banking, which often involves interest-based transactions. The Bank of Industry (BOI) and the Central Bank of Nigeria (CBN) play crucial roles in facilitating and endorsing non-interest banking practices, essential for fostering financial inclusion in a diverse economic landscape.

Recent Developments

According to the Central Bank of Nigeria’s latest reports, non-interest banking assets reached approximately ₦1.5 trillion by the end of 2023, significantly contributing to the overall banking sector’s growth. The BOI has initiated several programs targeted at small and medium-sized enterprises (SMEs) under the non-interest banking framework, enhancing access to capital for businesses that adhere to ethical finance principles.

In a recent statement by the CBN, the bank emphasized its commitment to promoting financial systems that cater to all segments of Nigerian society. This includes an active push for non-interest banking products that not only comply with regulatory standards but also address the needs of clients who seek alternatives to traditional banking services.

Significant Partnerships

Collaborations between the BOI and various Islamic banking institutions have seen the introduction of Shari’ah-compliant products, which are critical for expanding financial products available to businesses and consumers interested in non-interest banking. For example, partnerships have allowed for the development of Murabaha financing, which provides a profit-sharing mechanism without violating ethical guidelines.

Challenges and Outlook

Despite the promising growth, the non-interest banking sector in Nigeria faces several challenges, including limited awareness among potential customers and regulatory hurdles. Educational initiatives spearheaded by the CBN have aimed to demystify non-interest banking and promote its benefits, which is essential in reaching wider audiences.

Moving forward, industry experts predict substantial growth in non-interest banking as the regulatory environment continues to evolve and more financial institutions embrace this model. The BOI, in collaboration with the CBN, is anticipated to spearhead initiatives that not only enhance financial literacy among Nigerians but also attract local and international investments into the sector.

Conclusion

In conclusion, BOI and CBN are instrumental in positioning non-interest banking as a pivotal component of Nigeria’s financial ecosystem. Their commitment to development, education, and accessibility holds the promise of a robust banking environment that respects diverse principles while fostering economic growth and inclusivity.

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