By Segun Adeyanju
Nigeria’s financial sector is undergoing a major shift following a new Anti-Money Laundering (AML) directive by the Central Bank of Nigeria, compelling banks and fintech firms to overhaul outdated compliance systems.
The apex bank has given institutions 90 days to submit detailed AML implementation roadmaps, a move experts describe as a full-scale “technology reset” rather than routine regulatory compliance.
Industry stakeholders say many financial institutions still rely on manual or semi-automated processes, including spreadsheet-based systems, leaving them vulnerable to fraud and regulatory breaches. The directive is expected to accelerate investment in identity verification, real-time transaction monitoring and case management tools.
A major concern is poor data quality, with fragmented and outdated customer information limiting effective monitoring of suspicious activities. Experts warn that static verification models, often conducted only at onboarding, are no longer sufficient in today’s dynamic risk environment.
Transaction monitoring systems are also under strain, as traditional rule-based frameworks struggle to detect evolving fraud patterns, often generating excessive false alerts while missing sophisticated threats.
The transition is further complicated by a shortage of skilled professionals with expertise in compliance, data science and technology, as well as entrenched organisational silos that isolate compliance functions from core operations.
Analysts say the directive will serve as a critical test of the sector’s readiness, with institutions that adopt modern, data-driven compliance systems likely to gain a competitive edge, while laggards risk regulatory sanctions and reputational damage.
The policy signals a broader push toward a more transparent and technology-driven financial system, placing data integrity, real-time intelligence and industry collaboration at the centre of compliance in Africa’s largest economy.
