The Central Bank of Nigeria (CBN) has introduced a new pilot programme aimed at strengthening oversight of financial technology and digital asset companies. The initiative focuses on improving compliance with anti-money laundering and related financial crime regulations across key players in Nigeria’s fast-growing fintech ecosystem.
According to the apex bank, the pilot centres on Anti-Money Laundering, Counter-Financing of Terrorism, and Counter-Proliferation Financing (AML/CFT/CPF) supervision. It is part of a broader effort to reinforce the stability and integrity of Nigeria’s financial system while keeping up with global regulatory standards.
The programme will involve selected Virtual Asset Service Providers (VASPs), including major fintech firms such as Flutterwave and Paystack, alongside other digital finance and crypto-related platforms. These companies were chosen for closer supervisory engagement due to their relevance in the evolving digital payments and virtual asset space.
Through this pilot, the CBN seeks to better understand how these firms operate, the risks they face, and how their business models interact with the broader financial system. “The pilot is designed to develop a structured understanding of AML/CFT/CPF risks, business models, and operational practices across participating entities,” the bank stated.
Participating companies will be required to submit regular compliance reports using specified templates. They will also undergo detailed reviews covering governance structures, customer onboarding processes, transaction monitoring systems, sanctions screening, and cross-border transactions.
In addition, firms must demonstrate readiness to adopt global compliance standards, particularly the Financial Action Task Force (FATF) “Travel Rule,” which promotes transparency in cross-border financial transactions. This requirement highlights Nigeria’s intention to align its regulatory practices with international expectations.
The CBN clarified that participation in the programme does not equate to licensing or regulatory approval. Instead, it provides a controlled environment for engagement between regulators and industry players. This allows the bank to gather insights while guiding firms toward stronger compliance frameworks.
The move reflects a shift in Nigeria’s approach to regulating digital assets and fintech operations. Rather than imposing outright restrictions, regulators are now adopting a more structured and collaborative method to address risks associated with virtual asset transactions.
Nigeria remains one of the most active markets for digital assets globally, driven by demand for alternative payment systems, remittances, and financial innovation. However, concerns about illicit financial flows and weak compliance systems have prompted tighter scrutiny from regulators.
By launching this pilot, the CBN aims to close regulatory gaps, enhance transparency, and ensure that fintech and crypto-related activities do not threaten the country’s financial stability. The insights gathered from the programme are expected to shape future policies and strengthen long-term supervision of the sector.
