Central bank to tighten verification processes

The Central Bank of Nigeria (CBN) has cautioned deposit money banks against sourcing capital from illicit channels as part of the ongoing recapitalisation exercise, reports the Daily Post. The director of banking supervision at the CBN, Olubukola Akinwunmi, stressed that such actions could destabilise the financial system. Speaking at the 36th Finance Correspondents Association of Nigeria and Business Editors seminar held in Abuja on Monday, Akinwunmi said the apex bank would enforce strict verification processes to ensure compliance. The recapitalisation initiative, which which began on 1 April 2024, is expected to run for 24 months and aims to strengthen banks’ capacity to support Nigeria’s $1tn economy target. Akinwunmi explained that the recapitalisation exercise was designed not just to meet regulatory requirements but to prepare the sector for emerging economic and global challenges.