CBN to retire 1,000 workers, focuses on contactless payment systems

CBN to retire 1,000 workers, focuses on contactless payment systems

To safeguard Nigeria’s financial system, nurse the economy back to good health and restore investor confidence, the Central Bank of Nigeria (CBN) has issued a stern warning to banks and other culprits of anti-money laundering (AML) and counter-terrorism financing (CTF) regulations violations to live above board or face unpalatable consequences.

To whip them into line and insulate the economy from further vandalism, the apex bank has mandated a comprehensive overhaul of governance and compliance frameworks across all financial institutions, which would be subjected to regulatory scrutiny by 2025.

Speaking at the 59th Annual Bankers’ Dinner in Lagos at the weekend where he unveiled the CBN’s 2025 policy agenda, the Governor, Dr Yemi Cardoso, highlighted the need for structural reforms to prevent further economic setbacks.

While emphasising the need for stricter adherence to regulatory standards, he noted that as part of the CBN’s enforcement drive, 29 Deposit Money Banks (DMBs) were fined a total of N15 billion for failing to comply with AML/CTF requirements. These penalties, be stated, reflect the apex bank’s unflinching determination to fostering transparency and accountability within the financial sector while deterring illicit financial activities.

Cardoso, while addressing the governance lapses, also shed light on the wider economic consequences of systemic inefficiencies.

He revealed that Nigeria incurred a huge loss of N6.2 trillion in 2022 due to distortions in the foreign exchange (FX) market and restrictive policies that stifled economic activities.

READ ALSO:

• Reps suspend debate on Tinubu’s tax reform bills
• Northern group plans new party to unseat Tinubu
• Georgia: Mass protests grow entering fourth night

He added that the FX challenges, compounded by inadequate policy implementation, created an environment of uncertainty that undermined investor confidence and stymied growth across critical sectors.

Cardoso emphasised that addressing these issues requires a multifaceted approach, starting with robust reforms in the financial sector and proactive measures to stabilise the FX market.

He outlined the CBN’s  policy agenda for 2025, which aims to recalibrate the regulatory landscape, restore market confidence and promote sustainable economic development.

He said: “Historically, the industry has struggled with recurring issues, but we are confident that this approach will help change that narrative. A bank that prioritises compliance does more than protect itself, it strengthens the entire financial ecosystem. It directs financial resources toward growth, innovation, and prosperity rather than crime and corruption. Together, we must exceed standards, demonstrating to the public and the world that we are stewards of integrity and trust”.

He revealed that to further enhance the functionality of the foreign exchange market, the apex bank is introducing an electronic FX matching system, which has proven effective in other markets.

Cardoso said, “The current dollar exchange rate reflects the price that the most desperate buyers are willing to pay, and this does not represent the true market value of the naira.

“The introduction of the electronic matching system will correct these distortions by enhancing the price discovery process. Additionally, it will significantly boost the Central Bank’s oversight and intervention capabilities, ensuring a more stable and transparent foreign exchange market”.

The CBN governor noted that the CBN was aware of payment delays and has encouraged customers to report any difficulties withdrawing cash from bank branches or ATMs directly to the CBN through designated phone numbers and email addresses for their respective states.

Among the policy thrusts the governor listed include; the ambitious target to achieve 80% financial inclusion by 2026, implementation of its open banking framework, advancing contactless payment systems, and expanding its regulatory sandbox and exiting the FATF grey list by the second quarter (Q2) of 2025, which he assured that the CBN remains committed towards achieving despite higher interest rates and rising inflation.

Economic analysts have praised the CBN’s actions as a critical step toward rebuilding Nigeria’s financial integrity.

 

CBN to retire 1,000 workers, focuses on contactless payment systems