By Muhammad Mamman
Nigerian financial institutions will soon face ₦3 million penalties for failing to properly verify the status of their customers, under a new compliance push aimed at tightening oversight in the banking sector.
Regulators say the measure is designed to curb rising fraud, improve due-diligence standards and strengthen safeguards within the country’s increasingly digital financial landscape.
The directive, issued as part of updated Know Your Customer (KYC) and anti-money laundering rules, requires banks to ensure that every account holder’s identity, risk profile and transaction patterns are fully verified and up to date. Institutions that fall short will pay the newly approved fine for each violation.
A senior compliance official, speaking generally about the sector’s challenges, said the crackdown reflects growing concerns about loopholes exploited by illicit actors. “Stronger verification systems are essential for protecting both customers and the wider economy,” the official said.
Analysts say the tougher penalties could spur banks to invest more heavily in verification technology and staff training, but warn that tighter rules may lead to slower onboarding processes for customers.
The policy comes as Nigeria ramps up efforts to align its financial regulations with global standards and prevent
