CBN Tightens Banking Rules with Risk-Based Capital and Oversight Measures

The Central Bank of Nigeria (CBN) has implemented stricter banking regulations, mandating capital levels that align with risk exposure and enhancing oversight of insider lending. This move follows the CBN's introduction of risk-based capital requirements, which also restrict foreign subsidiary investments to 10% of shareholders’ funds. The regulator warned banks against engaging in risky lending,.

At the 37th Finance Correspondents Association of Nigeria (FICAN) Conference in Abuja, Dr Olubukola Akinwunmi, Director of Banking Supervision at the CBN, disclosed these enforcement actions. The CBN is deploying digital tools, artificial intelligence, and data analytics to strengthen bank supervision, protect depositors, and prevent financial instability.