CBN uncovers forex infractions in 34 banks, orders penalties in 2025 review

The Central Bank of Nigeria has identified foreign exchange infractions among authorised dealers after reviewing 34 financial institutions, and has recommended penalties.

The findings are contained in the CBN's 2025 Annual Report and Statement of Accounts, which covered supervisory activities carried out to strengthen compliance and protect the stability of Nigeria's financial system.

FX compliance assessment

The foreign exchange examination assessed compliance from April 1, 2024, to March 31, 2025. Examiners looked at how banks adhered to FX regulations, whether foreign exchange was used for eligible transactions, and how funds moved through major sources.

The report said: "Authorised dealers were broadly compliant with existing FX regulations, while some infractions were observed, and appropriate penalties were recommended."

The CBN described the review as part of a risk-based supervisory framework aimed at maintaining a safe and sound financial system.

Joint examinations with NDIC

Beyond FX oversight, the CBN carried out wider examinations with the Nigeria Deposit Insurance Corporation. In February 2025, the two regulators ran a Joint Risk Assets Assessment Examination covering all banks to check loan portfolio quality and confirm whether loan loss provisions were sufficient for approving 2024 financial statements.

Between August and September 2025, the CBN and NDIC also conducted Risk-Based Examinations on 17 banks with composite risk ratings of "Moderate" and "Low," along with three financial holding companies. The selection was based on ratings as at June 30, 2025.

The apex bank separately examined three credit bureaus and carried out routine inspections of selected Nigerian banks' foreign subsidiaries, working with host country supervisors.

Supervisory platform upgrades

To sharpen oversight, the CBN upgraded its Credit Assessment and Analysis System to an enterprise version. The upgraded platform processes data faster, produces better reports, and can handle datasets of more than one million records. It was deployed during the 2025 Risk-Based and Risk Assets examinations.

On October 6, 2025, the CBN launched its Licensing and Other Requests Approval Portal. The automated system handles approvals for staff clearances, senior management appointments, promotions, and board member changes. The CBN said the portal has cut processing times, raised transparency, and strengthened governance.

In a related move, the CBN has ordered Bureau De Change operators to return any foreign exchange purchased through the Nigerian Foreign Exchange Market that remains unused within 24 hours of the expiry of the approved utilisation period. Operators who fail to meet this obligation face regulatory sanctions.

For Nigerian businesses and currency watchers, the CBN's intensified supervision signals a continued push to enforce FX rules and improve governance in the financial sector.