CBN Raises Alarm Over Rising Risks In Non-Interest Banking Sector

The Central Bank of Nigeria (CBN) has raised fresh concerns over growing risks in the country’s non-interest banking sector, warning that weak governance, regulatory non-compliance, and emerging technology risks could undermine financial stability and erode public confidence if not urgently addressed.

The apex bank said the rapid expansion and increasing complexity of Non-Interest Financial Institutions (NIFIs) have exposed the sector to operational vulnerabilities, governance weaknesses, and heightened exposure to digital and fintech-related risks.

The warning was issued during the second Annual Interactive Session between the CBN Financial Regulation Advisory Council of Experts (FRACE) and the Advisory Committees of Experts (ACE) of Non-Interest Financial Institutions in Abuja.

Represented by the Director of the Financial Policy and Regulation Department, Dr. Rita Ijeoma Sike, the Deputy Governor in charge of Financial System Stability, Mr. Philip Ikeazor, said the risks confronting the sector require stronger oversight, improved compliance, and more effective governance frameworks.

He warned that failure to properly manage these risks could damage the credibility of Nigeria’s growing Islamic finance and non-interest banking system, reduce investor confidence, and weaken the sector’s contribution to financial inclusion.

According to him, the establishment of FRACE and mandatory Advisory Committees of Experts across all non-interest financial institutions was designed to strengthen Shariah governance, ensure regulatory alignment, and promote consistency across the industry.

“The objective is to institutionalise a robust Shariah governance system, provide structured dialogue, and enhance collaboration between regulators and market operators,” Ikeazor said.

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He added that continuous engagement between FRACE and ACE members is essential to ensure institutions fully understand regulatory expectations and implement them effectively across their operations.

The CBN stressed that non-interest banking has become an important part of Nigeria’s financial ecosystem, supporting financial inclusion, funding for MSMEs, real sector development, and ethical investment practices.

However, the bank warned that increasing product sophistication, expansion of service channels, and the rise of Islamic fintech innovations have introduced new risks that must be carefully managed.

These risks, according to the CBN, include weak internal controls, gaps in governance structures, inconsistent Shariah compliance monitoring, and cybersecurity vulnerabilities associated with digital financial services.

In his remarks, the Deputy Chairman of FRACE, Prof. Bashir Aliyu Umar, said the session was aimed at strengthening regulatory coordination and improving governance standards across the non-interest finance industry.

He commended the CBN for reviving the interactive forum, which was first introduced in 2014, noting that it remains a critical platform for dialogue between regulators and industry experts.

Earlier, Dr. Sike reaffirmed the apex bank’s commitment to building a credible, resilient, and well-regulated non-interest financial system capable of supporting sustainable economic growth.

She noted that the increasing diversity of institutions and financial products in the sector makes continuous regulatory engagement and expert advisory input more important than ever.

Technical sessions at the meeting focused on Shariah non-compliance risks, the implications for financial institutions, and the growing role of Islamic fintech in Nigeria’s financial inclusion drive.

Participants also discussed key industry challenges, including capacity gaps, independence of advisory committees, risk management practices, and the need for stronger governance structures to support innovation.

In his closing remarks, Prof. Abdul-Razzaq Alaro urged stakeholders to translate discussions into actionable reforms, stressing that the effectiveness of the session would be measured by improvements in governance and compliance within the sector.

The FRACE framework serves as a bridge between conventional financial regulation and Islamic finance principles, while ACEs provide internal Shariah oversight within individual institutions to ensure compliance with non-interest banking standards.

The CBN reiterated that it will continue to strengthen regulatory supervision, enhance risk monitoring systems, and support the development of a stable and trustworthy non-interest financial services sector in Nigeria.

CBN Raises Alarm Over Rising Risks In Non-Interest Banking Sector

City Business News @10: Oyeyemi Headlines Lecture on Logistics, Nigeria’s Economy

City Business News will celebrate its 10th anniversary with a high-profile lecture focusing on the critical role of transportation and logistics in Nigeria’s economic development.

The anniversary lecture, scheduled for Thursday, June 25, 2026, will hold at Rockview Hotels from 10:00am.

Publisher of City Business News Online, Moses Ebosele, disclosed this, adding the milestone represents a decade of impactful business journalism, credible reporting, and sustained coverage of Nigeria’s economic and industrial sectors.

He said in a statement that the major highlight of the event would be a keynote address titled, “Logistics As The Engine Room Of Nigeria’s Economy,” to be delivered by Boboye Oyeyemi, a renowned transportation and logistics expert.

Oyeyemi, who is the immediate past Corps Marshal of the Federal Road Safety Corps and current President of the Chartered Institute of Logistics and Transport, is expected to lead discussions on how efficient logistics and transport systems can drive national competitiveness, trade, and economic growth.

According to Ebosele, the event will attract major stakeholders from government institutions, regulatory agencies, the private sector, and the media.

Expected guests and organisations include Frank Nneji, founder of ABC Transport, alongside representatives of the Nigeria Customs Service, Nigerian Ports Authority, Nigerian Maritime Administration and Safety Agency, Nigerian Shippers’ Council, banks, and leading automobile companies.

Ebosele said the anniversary lecture would also serve as a platform for robust conversations on the future of logistics, transportation, and supply chain management in Nigeria.

He expressed appreciation to readers, advertisers, partners, and stakeholders for their support over the last decade, while reaffirming the organisation’s commitment to professionalism, excellence, and impactful business journalism.

Naira Trades Steady at ₦1,361 Amid Mixed Forex Market Signals

The Dollar to Naira exchange rate today showed relative stability on Monday, May 11, 2026, as the Nigerian naira continued to trade within a narrow range across both the official Nigerian Foreign Exchange Market (NFEM) and the parallel (black) market, supported by ongoing interventions from the Central Bank of Nigeria (CBN).

In the official foreign exchange market (NFEM), the naira traded at an average rate of about ₦1,361 per US dollar, with intraday movements fluctuating between approximately ₦1,355 and ₦1,366 depending on demand and supply conditions. Market analysts say this slight movement reflects continued pressure from importers, corporate dollar demand, and seasonal foreign payments, even as the CBN maintains liquidity interventions to stabilise the forex market.

In the parallel market, also known as the black market or Bureau De Change (BDC) segment, the dollar traded significantly higher than the official rate. Buying rates were recorded around ₦1,385 per dollar, while selling rates ranged between ₦1,395 and ₦1,405, depending on location and transaction volume. Traders in Lagos and Abuja attributed the higher rates to strong retail demand for dollars, especially for tuition payments, medical travel, and import-related transactions.

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Analysts note that the gap between the official and parallel market rates remains a key indicator of foreign exchange pressure in Nigeria, although the spread has shown slight signs of narrowing in recent weeks due to improved FX liquidity management and policy adjustments by the CBN.

Economic experts point to several factors influencing the Naira exchange rate today, including sustained CBN forex interventions, high import dependency, diaspora remittances, oil revenue inflows, and ongoing speculative activity in the black market. These forces continue to shape daily movements in both official and unofficial FX channels.

Financial observers also highlight the CBN’s “willing buyer, willing seller” FX policy framework as a key driver of improved transparency in the official market, although demand-side pressures continue to test the resilience of the naira.

Despite the current relative stability, analysts warn that the naira remains vulnerable to external shocks such as global oil price fluctuations and sudden spikes in dollar demand. They stress that long-term stability will depend on stronger export performance, increased foreign investment inflows, and improved domestic production capacity.

For now, the Nigeria forex market is described as stable but fragile, with traders closely monitoring policy signals and liquidity conditions that could influence future movements of the Dollar to Naira exchange rate.

Naira Trades Steady at ₦1,361 Amid Mixed Forex Market Signals