One year into Olayemi Cardoso’s drive to strengthen Nigeria’s banking system, the Central Bank of Nigeria (CBN) says its reforms have reshaped how banks are supervised, managed risks and prepared for future shocks. The measures, outlined in the apex bank’s latest Annual Report, show a shift from reacting to banking problems to identifying vulnerabilities before they threaten financial stability.
At the heart of the reforms is a risk-based supervisory framework that places greater emphasis on prevention. Rather than relying solely on routine compliance checks, the CBN intensified both offsite surveillance of banks’ financial returns and onsite examinations, including special investigations, to detect emerging risks early. The approach, backed by the CBN Act 2007 and the Banks and Other Financial Institutions Act (BOFIA) 2020, is aimed at ensuring the banking industry remains safe, sound and resilient.
One of the most significant policy changes during the period was the increase in the
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