AML compliance in Nigeria expanded significantly in 2025, with new regulatory initiatives affecting financial institutions, FinTechs, digital lenders, pension operators, and public-sector revenue systems. These developments reflect a broader shift toward stronger governance, formalised compliance structures, and increased supervisory coordination.

Central Bank of Nigeria: Creation of a Dedicated Compliance Department

The Central Bank of Nigeria (CBN) established a centralised Compliance Department with oversight of:

  • Financial crime supervision
  • Market conduct
  • Cybersecurity and enterprise security
  • Corporate governance and ESG oversight

Implications for Regulated Entities

  • More structured and frequent compliance reviews
  • Higher reporting and disclosure standards
  • Increased scrutiny of governance, vendors, and cybersecurity controls
  • Stronger expectations for board-level accountability

Digital Lending Regulations: Higher Compliance Standards

The Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations 2025 introduced wide-ranging obligations for digital lenders.

Key Requirements

  • Mandatory registration within defined timelines
  • Appointment of approved intermediaries
  • Formal complaints-handling mechanisms
  • Transparent disclosure of fees and repayment terms
  • Compliance with Nigerian data-protection laws
  • Prohibition of abusive recovery practices

What This Means for FinTechs

Digital lenders must now demonstrate:

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Pension Sector Reforms: PenCom’s Enhanced Expectations

New circulars from the National Pension Commission (PenCom) introduced changes affecting Pension Fund Administrators and Custodians.

Key Developments

  • Revised minimum capital thresholds
  • A structured securities lending and repo framework
  • Enhanced counterparty due diligence
  • Clearer verification standards for foreign-currency contributors

These updates increase governance, verification, and reporting obligations across the pension sector.

Tax Compliance: FIRS Enforcement of WHT Rules

The Federal Inland Revenue Service (FIRS) clarified withholding tax (WHT) obligations on interest from short-term securities.

Compliance Implications

  • Accurate classification of interest-bearing products
  • Updated tax monitoring and reporting controls
  • Stronger coordination between tax and AML functions

Cashless Payments and Public-Sector Transparency

The Federal Airports Authority of Nigeria (FAAN) launched its Go Cashless Initiative in September 2025, mandating digital payments across major airport revenue points.

This supports national objectives to:

  • Reduce cash-based vulnerabilities
  • Improve transaction traceability
  • Enhance transparency in public-sector revenue

Improved KYB Data Through MSME Registration

A joint initiative between SMEDAN and the Corporate Affairs Commission (CAC) will provide free registration to 250,000 MSMEs.

Benefits for Regulated Entities

  • Expanded access to verified business data
  • Improved KYB accuracy
  • Stronger foundations for risk assessment and onboarding

What These Changes Mean for AML Compliance in Nigeria

Organisations should prepare for:

  • Higher governance and documentation standards
  • Stronger onboarding, screening, and monitoring expectations
  • More consistent and predictable regulatory engagement
  • Increased scrutiny of emerging business models

Conclusion

Nigeria’s 2025 regulatory updates reflect a decisive move toward stronger compliance discipline and transparency. For regulated entities, success will depend on implementing scalable, technology-driven AML controls that support effective onboarding, screening, and ongoing monitoring.

FAQs

1. Why did Nigeria introduce so many AML reforms in 2025?
To strengthen regulatory effectiveness following FATF grey list removal.

2. Which sectors are most affected?
Banks, FinTechs, digital lenders, pension operators, and payment providers.

3. How does the new CBN structure affect supervision?
It enables more centralised, consistent, and rigorous compliance oversight.

4. Why is strong identity verification increasingly important?
Accurate IDV supports risk-based controls, fraud prevention, and regulatory confidence.