The operators, under the Association of Licensed Telecommunications Operators of Nigeria (ALTON), said much of the money currently funding network expansion and infrastructure development comes from domestic financing, reinvested earnings and other funding channels that are not fully captured by the National Bureau of Statistics’ capital importation framework.

The reaction follows the release of the NBS Capital Importation Report for the first quarter of 2026, which showed that foreign capital inflows into telecommunications dropped from $80.78 million a year earlier to $7.24 million.

According to the report, telecoms accounted for just 0.07% of the $10.37 billion that entered the Nigerian economy during the quarter.

ALTON said the figure presents only part of the investment picture.

“…this metric appears to capture only a portion of the total capital actively deployed within the sector.

“Our industry’s substantial Capital Expenditure (CAPEX) figures suggest that current investment derives from domestic capital sources, reinvested operational earnings – financial mechanisms that may not be fully reflected in conventional foreign capital importation metrics,” the association said.

The group noted that mobile network operators, tower companies and other telecom firms invested about N2.13 trillion in capital projects in 2025. It added that planned capital expenditure for 2026 currently stands at N1.86 trillion.

According to ALTON, the funds are being directed towards network expansion, infrastructure upgrades, technology improvements and measures aimed at strengthening operational resilience.

The association argued that the wide gap between reported foreign inflows and actual spending within the industry points to shortcomings in the current method used to track investments.

To address this, it called for collaboration between the Nigerian Communications Commission (NCC), the National Bureau of Statistics and the Central Bank of Nigeria to develop a comprehensive framework for measuring investment in the telecom sector.

“To ensure Nigeria’s telecommunications sector investment profile is accurately represented, ALTON respectfully proposes a collaborative engagement among the Nigerian Communications Commission, the National Bureau of Statistics, and the Central Bank of Nigeria to develop a more inclusive and comprehensive investment-tracking framework,” the association stated.

Despite pressure from inflation, high costs of operations and foreign exchange challenges, ALTON said operators have always invested heavily to maintain service quality and expand connectivity across the country.

The association also credited the Federal Government’s approval of a 50% tariff increase in 2025 with improving operators’ ability to reinvest in their networks.

“The timely intervention enabled operators to transition from financial distress to a sustainable, growth-focused model characterised by significant capital reinvestment,” it said.

While telecom operators questioned the reported investment figure, the NBS data showed that foreign investors significantly increased their exposure to Nigeria during the quarter.

Total capital importation rose to $10.37 billion in Q1 2026, representing an 83.8% increase from $5.64 billion recorded in the same period last year. Compared with the previous quarter, inflows climbed by nearly 61%.

However, most of the money flowed into short-term financial assets rather than long-term productive investments.

Portfolio investments accounted for $9.86 billion, or about 95% of total inflows, while foreign direct investment stood at just $135 million. Other investments, including loans and trade credits, contributed $374.5 million.

The banking sector attracted the largest share of foreign capital, receiving $7.55 billion, followed by the financing sector with $2.43 billion. Manufacturing drew $152.3 million, while telecommunications received $7.24 million.

CBN Governor Olayemi Cardoso announced the target at the launch of the Payments System Vision 2028 (PSV 2028), saying the apex bank wants to push financial inclusion to 95 per cent, up from current levels where a large share of Nigerian adults remain outside or at the edges of the formal economy.

“In 2023, a large number of Nigerian adults had access to financial services. Under Vision 2028, I would like to see this reach 95 per cent inclusion, meaning 15 million more market women, farmers, and young people will gain access to financial services,” Cardoso said.

The governor tied inclusion directly to poverty reduction, arguing that access to payment systems determines whether citizens can fully participate in the economy.

He said cash must no longer define that participation. “It is not enough for individuals to think, ‘I am fine, I can just use cash’. It is more than that,” he added, calling for a significant reduction in cash circulating outside the banking system.

Jimoh Itopa Musa, CBN director of Payments System Policynoted that Nigeria now has about two million banking agents nationwide, small business owners who have helped extend financial access into underserved communities.

He said PSV 2028 builds on this foundation, targeting the three barriers that have historically constrained inclusion: access, complexity, and trust.

CBN Deputy Governor Muhammad Sani Abdullahi added that the framework’s five pillars, infrastructure, inclusion, innovation, cross-border payments, and system integrity, reinforce each other.

“Infrastructure drives inclusion, inclusion drives adoption, and adoption fuels innovation and growth,” he said.

According to the regulator, the messages are designed to mislead the public, spread false information, and lure unsuspecting individuals into clicking malicious links that could compromise personal or financial data.

Fake Messages Mimic Official CBN Communications

In a statement issued by Hakama Sidi-Ali, the acting director of Corporate Communications, the apex bank said the fraudulent messages contain misleading information about the institution’s leadership, licensing activities and policy decisions, while urging recipients to click suspicious links that could expose them to cyber fraud.

According to the bank, the deceptive messages are part of attempts by cybercriminals to misinform members of the public and gain access to sensitive personal or financial information.

“The Central Bank of Nigeria wishes to alert members of the public to the circulation of fraudulent messages, emails and online communications purporting to originate from or be associated with the Bank, which are intended to misinform members of the public,” the statement said.

The bank warned that many of these messages direct recipients to suspicious websites or ask them to click unsafe links, exposing users to fraud, identity theft, or account compromise.

CBN Urges Public to Verify Before They Click

To combat the scam attempts, the CBN urged Nigerians to rely only on its official website and recognised communication channels for verified information.

The regulator advised members of the public not to share confidential data, banking credentials, or personal information through unsolicited emails, text messages, or social media links.

Why This Matters in Nigeria’s Digital Economy

As digital banking, mobile payments, and online financial services continue to grow, fraudsters are becoming more sophisticated in impersonating trusted institutions.

The warning highlights a broader issue: cybersecurity awareness is now as important as cybersecurity technology. Even the strongest systems can be undermined when users are tricked into giving access voluntarily.

The CBN’s alert is more than a scam warning, it is a reminder that trust is the foundation of digital finance.

For consumers, the rule is simple: Pause. Verify. before clicking.

For institutions, it reinforces the need for continuous customer education, stronger fraud monitoring, and faster response systems in an era of rising digital deception.

From the shadow bans in the banking sector to the skepticism of national security agencies, the wild west of crypto has often been viewed more as a threat to be contained than an opportunity to be harnessed.

That narrative shifted today.

The Virtual Asset Service Providers Association (VASPA), a Pan-African industry association, has officially unveiled Project Green-White-Green, a comprehensive whitepaper that aims to do the unthinkable: bridge the gap between the chaotic liquidity of global digital assets and the structured requirements of the Nigerian state.

This isn’t just a policy paper; it is a multi-billion dollar roadmap designed to integrate an estimated $92.1 billion in annual virtual asset volume into the formal economy.

Protecting the Naira: From Restrictions to Dynamic Alignment

Perhaps the most topical issue for Nigerians today is the volatility of the Naira. In a bold move, VASPA’s Market Integrity pillar proposes a dynamic FX alignment  standard. Instead of trying to shut down markets, an effort that often only drives them deeper underground, the framework suggests linking trading spreads to official NAFEM rates.

This coordinated superhighway aims to end the fragmented oversight that sees operators bouncing between the SEC, CBN, and CAC.

By resolving the chicken-and-egg paradox, where the CAC won’t incorporate a business without a SEC license, and the SEC won’t license without incorporation, the project clears the path for indigenous “Web3” startups to flourish legally.

A National Security Asset, Not a Threat

For the security conscious, the whitepaper flips the script on anonymity. Through mandatory integration with the National Identity Management Commission (NIMC), the framework seeks to ensure every participant is a verified, accountable citizen.

“We are no longer waiting for the future of finance to happen to Nigeria; we are architecting it,” said Franklin Peters, executive chair of VASPA and CEO/founder of Boundlesspay. “One of our country-specific, practitioner-led projects for the constructive realignment of the virtual asset sector, Project Green-White-Green is the definitive roadmap for any serious operator or investor who wants a stake in the next decade of our digital economy. While Project Green-White-Green is designed for Nigeria, similar projects will be designed for other key African markets as well. This is because the regulatory landscape is fundamentally shifting. Those who align with this framework will lead in what we consider Nigeria’s most massive growth phase.”

The $1 Trillion Ambition and the Fiscal Opportunity

As the Federal Government pursues an ambitious goal of a $1 trillion economy by 2030, the question of “where will the revenue come from?” looms large. Project Green-White-Green answers this with Pillar III: Fiscal Sovereignty.

The whitepaper reveals that between July 2024 and June 2025 alone, Nigerians conducted over $92 billion in transactions, most of which generated zero tax revenue due to a lack of infrastructure. VASPA’s solution? zero-friction automated taxation.

By proposing an API-driven interface that automates VAT and Capital Gains Tax (CGT) at the point of transaction, the project promises to turn a “grey market” into a sustainable revenue engine for the Federation.

To encourage this shift, the project advocates for a “Clean Slate” regularization, removing the fear of retroactive liability for those who operated during previous periods of regulatory ambiguity.

The Architect’s View

The development of this framework was not just an industry wish-list, but an exercise in deep technical and legal alignment.

“This whitepaper is the culmination of meticulous legal, technical, and economic engineering,” stated Favour Uche, project manager for Project Green-White-Green and Star Associate at Infusion Lawyers. “We didn’t just compile industry feedback, but articulated and aggregated them into the frameworks proposed, ensuring alignment with national interest. We are now fully prepared to take this blueprint to the highest levels of government. The groundwork is officially laid, and the execution phase begins now.”

The Safe Harbor: A Bridge to the Future

Recognizing that you cannot change an entire industry overnight, VASPA has proposed a Safe Harbor Pilot. This acts as a non-punitive protected window where operators can transition into full compliance under the watchful eye of regulators without the threat of immediate penalties.

This pilot includes a 24-Month Sovereign Integration Roadmap, specifically designed to bring global offshore exchanges into the fold as Digital Residents, eventually requiring them to localize operations, pay taxes, and partner with indigenous firms to upskill Nigerian talent.

With the successful exit from the FATF Grey List in October 2025, Nigeria has already proven its commitment to global financial standards.

Project Green-White-Green is the next logical step, a sophisticated, made-in-Nigeria response to the global crypto phenomenon.

As the document moves toward high-level engagements with the CBN, SEC, NFIU, NRS, EFCC, ONSA, the Presidency in Abuja, the message to the industry and the government is clear: The digital economy is no longer a peripheral experiment. It is a sovereign priority.

*Project Green-White-Green is the primary instrument for VASPA’s upcoming engagements with Nigeria’s top financial and security authorities. The public version is currently available here.

In a conversation with Brad Levy, chief executive of ThetaRay, a company focused on the “wiring” of trust through AI-powered monitoring that helps banks and fintechs scale safely while detecting and reporting financial crime, we examined what this speed means for risk, regulation, and trust in the financial system. 

Levy argues that old ways of tracking money flows no longer hold up.

Nigeria’s banking and fintech sector has expanded, almost faster than the systems built to regulate it. Payments now move in seconds, and fraud patterns move just as quickly. 

Regulators are responding with stronger policies and expectations.

For Levy, the transition is apparent. Systems built for manual checks cannot keep pace with today’s transaction volumes or the complexity of digital crime networks. He describes a system under stress, where scale has exposed the limits of human-led monitoring.

Across banks and fintechs, the gap in readiness varies. Some institutions are already adopting artificial intelligence and real-time oversight. Others still rely on older compliance models that struggle to connect customer data with live transaction behaviour.

The Central Bank of Nigeria’s recent direction on automated anti-money laundering (AML) systems sets a firm line, forcing the industry to move from gradual improvement to immediate action. Institutions now have to rethink how they see compliance, not as a back-office task, but as core infrastructure.

In this interview, Levy, who has spent his career building the plumbing of the global financial markets, first with nearly two decades at Goldman Sachs, then leading Symphony and MarkitSERV, explains what has changed, what still slips through the cracks, and why Nigeria’s approach may affect how digital finance is policed far beyond its borders.

TE: The Central Bank’s move makes automated AML systems effectively non-negotiable. From your vantage point, what changed in the risk sector to push regulators from guidance to outright mandates? 

Brad Levy (BL): The math simply stopped working for manual oversight. Nigeria has one of the most vibrant digital payment ecosystems in the world. You can’t monitor millions of instant transactions using spreadsheets and human eyes. 

The CBN’s March 2026 mandate recognises that guidance doesn’t stop automated, bot-driven crime. By mandating these systems, Nigeria is making a strategic move to protect the integrity of the Naira and ensure the country stays effectively connected to the global financial map.

TE: You’ve worked closely with financial institutions in Nigeria, where do most banks and fintechs actually stand today in terms of AML capability, and how wide is the gap? 

BL: The divide is significant, though it’s closing fast. We see forward-leaning institutions like Sterling Bank already moving toward a future-proof posture by putting AI at the centre of their monitoring. On the other hand, plenty of firms are still stuck in a “box-ticking” mindset.

The gap is most obvious when you look at the CBN’s anti-money laundering automation mandate. Most legacy systems can’t provide a unified view of the customer or link KYC/KYB data to transaction behaviour. 

The 18-month window for banks is tight, but the real pressure is the three-month requirement to submit a roadmap. If financial institutions haven’t started their gap analysis yet, they’re already behind.

TE: There’s a lot of talk about AI in compliance, but in practical terms, what kinds of financial crime patterns are still slipping through traditional monitoring systems that AI is better at catching? 

BL: Traditional systems are built on rules. They look for what we already know, like whether a transfer is over a certain dollar amount. Modern criminals have moved past that. They use smurfing or complex networks of mules to make illicit flows look like normal, low-value activity. AI catches the anomalies. 

It identifies patterns that look wrong even if we haven’t seen that specific tactic before. For a bank, it’s the difference between chasing 5,000 false alarms and actually finding the criminal network hidden in the noise.

TE: For Nigerian institutions, this goes beyond a tech upgrade to an operational shift. What are the biggest implementation challenges you’re seeing on the ground, especially around data quality, cost, and internal expertise? 

BL: The biggest hurdle is fragmented data. AI is only as good as what you feed it, and many institutions have their KYC data sitting in a different silo than their transaction logs. There is also a lingering perception that compliance is just a “tax” on doing business. 

I argue it’s a strategic asset. When you use AI to reduce false positives by 90%, you aren’t just satisfying the CBN; you’re making the entire bank more efficient. Your investigators can finally focus on real risks instead of low-value busywork.

TE: Do you see this directive as a Nigeria-specific response or part of a regulatory change across Africa? And how might it reshape expectations for cross-border transactions over the next few years? 

BL: Nigeria is the blueprint for the continent. We’re seeing similar shifts everywhere, from the EU’s new AML Authority to tightening rules in the US. This is Nigeria’s “mobile phone” moment. Just as the continent skipped landlines to go straight to mobile, Nigeria is leapfrogging the failing, manual era of compliance. 

By hard-coding AI and transparency into the banking system, Nigeria is making itself a much safer destination for global capital. This mandate turns compliance into a bridge for international trade rather than a barrier.

Adeleye sated this in his address during the recent WorldStage Nigeria’s Macro-economic Outlook 2026 presentation in Lagos.

In the speech, the WorldStage boss explored how nurturing the synergy between local media and corporate organizations can ensure steady flows of business and investment information.

President Bola Tinubu said recently that his government will cut tariffs on media equipment coming to the country, hoping to provide some relief for the media industry.

“But with media houses now transforming to offer online products and services, the extent to which they will benefit from such tariffs cut may be very minimal,” Adeleye said.

According to him, the only reasonable revenue source in the industry is advertising, whose window has been closing over the years.

He offered another look into the Federal Government’s “Nigeria First” policy through the lens of the media sector and the local advertisers he said make profits in Nigeria but spend the bulk of their ad dollars on foreign media to look good.

“The policy can be explored to compel local businesses to prioritize the local media. This is important because many Nigeria’s blue chips spend millions of dollars to promote their businesses in foreign media with little regards for the local players,” he said.

“The way forward, I think, should be for President Bola Tinubu to issue an Executive Order mandating local firms to commit nothing less than 80 percent of their advertising budget to local media.”

He commended sponsors of the outlook, which include the Nigeria Liquefied Natural Gas (NLNG), Zenith Bank, NLNG, CBN, NNPC Limited, Linkage Assurance, and Fidelity Bank.

“I believe if most Nigerian firms can emulate NLNG in terms of social responsibility and commitment to local media, there will be no need of seeking for an Executive Order for them to do the needful,” he said.

The outlook reflected hopes, projections, optimism for Nigeria’s economy, with caution, according to its reviewer, Lagos Commissioner for Information Gbenga Omotoso.

Adeleye said a sequel to the outlook, Q1 2026 Report, will provide actionable insights for policymakers, businesses, and investors, informing strategies for growth and development.

Seeking to improve how Nigerians abroad send money home, the approval allows NALA to plug directly into the Nigeria Inter-Bank Settlement System (NIBSS).

This removes the need to route transactions through intermediary banks, a process that usually slows transfers and adds extra expenses.

Speaking at a briefing in Lagos, Nicolai Eddy, NALA’s co-founder and chief operating officer, described Nigeria as central to the company’s growth plans in Africa.

“Nigeria is one of our largest markets on the continent. With this licence, we can ensure that money reaches families, businesses and institutions quickly and reliably,” he said.

Until now, many cross-border transfers passed through multiple financial institutions before reaching recipients, with each layer taking a fee.

Direct integration with NIBSS removes that chain, allowing funds to move more efficiently into Nigerian bank accounts.

Eddy said the licence also ensures compliance with CBN regulations while enabling faster and more cost-effective transfers from key corridors such as the UK, United States and Europe.

The expected impact includes:

• Faster transfers: Funds can arrive in Nigerian accounts within minutes
• Lower fees: Fewer intermediaries reduce transaction costs
• Improved reliability: The company is targeting a 99.9% success rate

Nigeria is one of the largest recipients of diaspora remittances in Africa, with official inflows estimated at about $23 billion annually.

Reports, however, say the true figure could be higher when informal channels are included.

Brian Edwards, NALA’s country manager for West Africa, said a key objective is to bring more of these flows into formal, regulated channels.

“The official numbers are strong, but a large volume still moves through informal routes. Our goal is to provide a trusted alternative that is transparent and secure,” he said.

He also addressed a common concern among senders, noting that remittances sent through licensed IMTOs are not subject to tax in Nigeria.

Expanding Beyond Personal Transfers

NALA is also targeting business transactions through its B2B platform, Rafiki. The service allows global firms and remittance providers, including partners such as MoneyGram, to use NALA’s infrastructure to move funds into African markets more efficiently.

This positions the company both as a consumer remittance app, and as a backend provider for cross-border payments at scale.

Transparency as a Selling Point

One of NALA’s distinguishing features is price visibility. The platform shows users how its rates compare with competitors in real time, allowing them to choose the best available option.

The company says this approach is aimed at building trust with diaspora users who are usually sensitive to exchange rates and hidden charges.

Implications for Nigeria’s Economy

Increased use of licensed IMTOs will enhance convenience for senders in Nigeria, and higher inflows through official channels can strengthen foreign exchange liquidity, support the naira and improve transparency in the financial system.

With more fintech firms securing regulatory approvals and investing in payment infrastructure, the long wait times and uncertainty that once affected cross-border transfers are gradually fading.

This shows inflation cooling but still above the policy target that monetary authorities consider fully stable. 

At the same time, Nigeria’s benchmark interest rate stands at 26.5% after the central bank trimmed it by 50 basis points in February, aiming to support growth while inflation begins to ease. 

Looking from the perspective of a global macro moment, inflation is no longer running out of control, but it has not disappeared either. Central banks are now in a narrow corridor between being alert and being relieved.

So the important point for markets to consider this week is whether central banks are preparing to pivot, only pausing, or settling into a prolonged period of restrictive policy.

The Global Monetary Policy Sector

Across developed economies, monetary policy has entered a more complicated phase, with a tough cycle that began after the inflation shock of the early 2020s has largely stopped. But the expected rapid shift towards rate cuts has not arrived.

The discussion is now centred on timing.

In the United States, regulators are still balancing two conflicting issues. Inflation has cooled significantly from its earlier peaks, but several price categories are still stubborn. Housing expenses, medical services and utilities push core inflation higher even as energy prices fluctuate. 

Markets have also become more cautious about expecting aggressive rate cuts. Investors now believe there may be only one or two small reductions this year, far fewer than earlier forecasts. 

This is globally important, as monetary policy in the United States affects capital flows, borrowing costs and currency stability across much of the world.

Meanwhile, the global inflation environment is uneven. Across developed economies, headline inflation within the OECD slowed to about 3.3% at the start of 2026, a decline from the previous month but still above the levels central banks consider comfortable. 

In short, inflation is falling, but not quickly enough to allow policymakers to relax fully.

Nigeria’s Policy Balancing Act

The challenge is even more in frontier and emerging markets.

The Central Bank of Nigeria recently lowered its benchmark interest rate to 26.5%, showing assurance that inflation pressures may gradually ease. 

Even so, the cost of borrowing is still extremely high and the reason? Policymakers are trying to achieve three objectives at once:

• stabilise inflation
• support economic activity
• maintain currency stability

Achieving all three simultaneously is rarely possible.

Nigeria’s inflation rate is still above 15%, and the exchange rate influences domestic prices through imported goods and costs of energy. 

This is the central dilemma facing many emerging economies. They cannot ease policy too quickly because capital flows are sensitive to interest-rate differences between countries. If global rates stay high, funds tend to move towards advanced markets where returns are perceived to be safer.

The Inflation Problem That Has Not Fully Disappeared

Although headline inflation has fallen across many economies, several forces keep prices elevated.

The first is energy.

Oil markets are sensitive to geopolitical tensions and supply decisions. When crude prices jump, costs of transport and manufacturing quickly increase. That effect spreads through the economy.

Second, services inflation are sticky, wages have increased in many sectors since the pandemic years, and labour markets have not fully loosened.

Third, parts of the global economy are experiencing structural inflation. Supply chains are changing, countries are investing in domestic manufacturing capacity and trade policies are becoming more protectionist.

These forces make inflation slower to decline than many economists expected two years ago.

The Growth Question

While inflation is easing slowly, economic growth is also showing signs of fatigue.

Higher costs of borrowing have begun to influence business investment decisions. Companies are delaying expansion plans or financing them more carefully. Households are also adjusting their spending behaviour.

Unemployment in the United States has edged up to around 4.4%, showing a gradual cooling in the labour market. 

Central banks, therefore, face a classic policy trap, and if they keep rates too high for too long, economic growth could slow even more. If they cut rates too soon, inflation may return.

That trade-off explains the cautious tone in monetary policy discussions worldwide.

What Financial Markets Are Showing

Financial markets usually anticipate policy changes before central banks act.

Bond markets have already adjusted expectations. Long-term yields have been relatively elevated because investors believe interest rates may stay higher for longer than previously assumed.

Again, interest-rate differences between countries are affecting capital flows and exchange-rate movements.

For emerging markets, this is especially important because when developed economies maintain high interest rates, global investors move funds away from riskier assets towards safer government bonds.

The result can be currency pressure and tough financial situations in developing economies.

Why it is important for Emerging and Frontier Economies

For countries like Nigeria, global interest-rate cycles carry significant consequences and higher global rates tend to produce three effects.

First, capital flows shift towards developed markets. That reduces foreign investment in emerging economies.

Second, currencies may weaken as investors search for higher returns elsewhere.

Third, debt servicing costs increase, particularly for countries that borrow in foreign currencies.

This is why monetary policy decisions in economies ripple far beyond their borders.

Three Possible Paths for 2026

The global monetary policy cycle could evolve in several ways.

Scenario one: the pivot.
If inflation falls more quickly than expected and economic growth weakens, central banks may begin a gradual rate-cutting cycle.

Scenario two: the pause.
Inflation declines slowly but stays above target. Regulators hold rates steady for longer than markets expected.

Scenario three: higher for longer.
Energy shocks, wage pressures or geopolitical disruptions push inflation back up, forcing central banks to maintain restrictive policy for several more years.

At the moment, the second scenario appears most consistent with current data.

The Macro Question

From my perspective, the central issue isn’t about inflation l falling or not.

It probably will.

The issue is whether the world has entered a period where interest rates settle at structurally higher levels than the ultra-low era that followed the global financial crisis.

If that happens, the implications are wide-ranging. Asset prices, government borrowing, corporate investment and currency markets would all need to adjust to a new financial environment.

The guidelines, issued in March 2026, formally recognise artificial intelligence and machine learning as tools banks and payment companies can use to monitor suspicious transactions.

They also require financial institutions to deploy automated anti-money laundering systems capable of detecting unusual activity and reporting it to regulators.

Under the directive, banks, mobile money operators, international money transfer operators and other regulated financial institutions must implement systems that support customer risk profiling, sanctions screening, transaction monitoring and case management.

“As financial services become increasingly digitised and complex, manual AML/CFT/CPF controls are no longer sufficient to manage evolving risks,” the central bank said in the framework.

For years, many compliance processes in Nigeria’s financial sector relied heavily on manual reviews and rule-based systems. The new standards shift the focus toward technology-driven monitoring.

Banks will now be expected to deploy automated platforms that can track customer behaviour, flag unusual transaction patterns and support real-time reporting of suspicious activity to regulators, including the Nigerian Financial Intelligence Unit.

These systems must integrate with core banking platforms and customer onboarding systems so institutions can analyse transactions in the context of a customer’s profile rather than isolated payment data.

The framework also encourages the use of tools such as anomaly detection, behavioural pattern recognition and automated risk scoring. Systems should be capable of identifying name variations during sanctions checks and screening customers against politically exposed persons lists.

However, the central bank insists technology cannot operate without oversight. Financial institutions that deploy machine-learning models must validate those systems regularly and ensure investigators can understand why alerts were triggered.

Real-time fraud monitoring becomes a requirement

The new standards don’t just focus on money laundering, as banks must also deploy automated fraud monitoring tools that track transactions across cards, electronic channels, deposits and lending platforms.

The systems are expected to operate in real time or near real time so institutions can stop suspicious transactions before funds leave an account.

Fraud monitoring tools may operate on the same platform as anti-money laundering systems, but the regulator requires institutions to maintain separate management and governance structures for each function.

Data from the Financial Institutions Training Centre shows fraud losses climbed to ₦3.29 billion in the first quarter of 2025, representing a 603% increase year-on-year, with 12,347 cases reported across the banking sector.

Regulators say the growing use of digital payment platforms, instant transfers and online banking has created new opportunities for organised financial crime.

Aligning Nigeria with global compliance trends

Nigeria’s new regulations also place the country within a bigger global shift toward technology-based compliance.

Industry estimates suggest that about 90 per cent of financial institutions worldwide will use artificial intelligence or machine learning in anti-money laundering programmes by 2026, up from roughly 62% in 2024.

Regulators in other jurisdictions are already seeing similar adoption. Data from the UK’s Financial Conduct Authority shows about 75% of financial firms already use AI in compliance operations, with another 10% planning deployment within three years.

These technologies can reduce false alerts by as much as 40%, allowing compliance teams to focus on genuinely suspicious transactions rather than reviewing thousands of routine alerts.

The regulatory technology market is also expanding. Analysts estimate the global RegTech market could reach $19.5 billion by 2026, driven largely by demand for AI-powered compliance systems.

Implementation timeline for banks and fintechs

The central bank has given financial institutions a phased timeline to implement the new framework.

Banks classified as deposit money institutions must fully comply within 18 months, while other financial institutions have up to 24 months to deploy compliant systems.

Each institution must also submit a detailed implementation roadmap to the regulator within three months of the circular’s issuance.

Supervisory teams will monitor compliance through inspections and regulatory reviews. Institutions that fail to meet the requirements risk sanctions under existing banking regulations.

Part of a clean-up of Nigeria’s financial system

The new CBN AI anti-money laundering (AML) standards follow several regulatory movements aimed at strengthening financial oversight in Nigeria.

In recent years, the central bank strengthened customer verification regulations, requiring new account holders to provide a Bank Verification Number or National Identification Number. Authorities also introduced stronger reporting requirements for fraudulent transactions and refund investigations.

These reforms were important in Nigeria’s removal from the grey list of the Financial Action Task Force in 2025, after the country improved transparency in its financial system.

Regulators are now pushing banks and fintech companies toward a more integrated financial crime monitoring system where fraud detection and anti-money laundering management share data and analytics.

Officials say the goal is to detect suspicious activity faster and close the gaps criminals use to move money through the financial system.

The rebound came even as the official window recorded losses, calling attention to current liquidity stress in the formal foreign exchange market.

Data from street traders showed the naira firmed against the dollar in the black market, surprising some dealers who expected further weakness.

The appreciation is one of the strongest single-day recoveries in recent weeks and provided short-term relief after months of volatility.

The currency, however, weakened against other major currencies in the parallel segment. It fell by N50 to close at N1,954.99 per pound, shed N15 against the euro to N1,652/EUR, and lost N10 to trade at N1,047 per Canadian dollar.

Official Window Extends Losses

At the official market operated by the Central Bank of Nigeria, the naira moved in the opposite direction.

The local unit depreciated by N6.13 to close at N1,355.37 per dollar. It also slipped against the euro, losing N4.94 to settle at N1,596.36/EUR compared with N1,591.42 the previous day.

Against the pound sterling, the naira declined by N6.39 to close at N1,828.26/GBP.

Traders linked the stress at the official window to high demand from corporates and manufacturers seeking foreign exchange for imports and other obligations.

Card Transactions Edge Higher

For retail customers using bank channels for international payments, rates also adjusted upward. Guaranty Trust Bank quoted N1,361/$ for international transactions on naira cards, a N6 increase from the prior rate.

Bank rates typically mirror movements at the official window, and Wednesday’s adjustment emphasises the alignment with prevailing market conditions.

Diverging Signals

The gap between the parallel and official markets reveals the uneven flow of dollar supply. Dealers attributed the black market recovery to increased dollar sell-offs by individuals and a pause in speculative buying.

By contrast, demand within the banking system is still elevated, keeping pressure on official rates.

Market participants say investors are watching for further policy signals from the apex bank aimed at narrowing the spread between exchange segments and improving liquidity.

Shettima: Reforms Beginning to Show Impact

Meanwhile, Vice President Kashim Shettima said the federal government’s economic reforms are beginning to yield results.

Speaking at the Progressive Governors Forum’s Renewed Hope Ambassadors Strategic Summit in Abuja on Tuesday, February 24, 2026, Shettima said the naira could have strengthened to around N1,000 per dollar within weeks if not for interventions by the Central Bank to maintain stability.

“Our currency is strong and stable,” he said, adding that recent measures were designed to prevent market distortions and discourage speculative dollar hoarding.

Despite the parallel market rebound, analysts stress that the sustainability of the currency’s stability will depend on improved dollar inflows, stronger reserves and continued policy coordination between fiscal authorities and the central bank.