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Introduction
In this Regulatory Digest for March, we highlight how Nigeria is accelerating its digital economy transformation through targeted regulatory reforms, prioritising financial resilience, cybersecurity, and inclusive innovation amid global tech shifts. The CBN spearheaded the enhancements of instant payments, automated AML systems, and banking recapitalisation, while the SEC fortified capital markets and FMCIDE advanced child safety online, and school connectivity—moves that collectively curb fraud, unlock trapped assets, and bridge infrastructure gaps. Across Africa, we see Egypt and Zimbabwe's developing AI strategies, alongside World Bank-backed digital integration in West Africa, underscore a continental momentum toward ethical tech governance and economic competitiveness.
A quick summary...
CBN Introduces Additional Functionalities for Instant Payments
The CBN issued new guidance on additional functionalities for Instant Payment (IP) services to enhance customer control, security, and fraud management. Key additions include, voluntary opt-in/opt-out with multi-factor (MFA) authentication, adjustable transaction limits, enterprise fraud monitoring, liveliness checks, device binding for apps, and a 24-hour limit for new activation. This guidance is effective July 1, 2026.
The implication of this guideline is that financial institutions and fintechs face urgent tech upgrade for real-time monitoring and MFA, raising compliance costs but reducing fraud losses estimated at billions annually. Customers will gain greater control, boosting trust, while the economy benefits from safer digital payments supporting faster transactions and growth in e-commerce.
CBN Issues Baseline Standards for Automated AML Solutions
As part of its efforts to strengthen financial system integrity and stability in the country, the CBN issued Baseline Standards for Automated Anti-Money Laundering (AML), Combating the Financing of Terrorism (CFT), and Countering Proliferation Financing (CPF) solutions. The standards provide a framework for deploying automated systems to detect and report suspicious transactions in real time, enhance compliance with AML/CFT/CPF laws, and leverage emerging technologies to improve financial crime risk management.
Financial institutions must now integrate AML systems linked to KYC within 18 – 24 months. While this enhances sector integrity, and curbs illicit flows, this would strain smaller as it increases their operational cost. However, this move would further bolster Nigeria's FATF standing and attract foreign investment as it would signal robust anti-crime measures.
CBN Reports Steady Progress in Banking Sector Recapitalisation
The CBN confirmed continued progress under its 2024 banking sector recapitalisation programme aimed at strengthening financial system resilience and supporting economic growth. As of March 6, 2026, 30 (thirty) banks have met the revised minimum capital requirements, while 33 (thirty-three) banks have raised additional capital through rights issues, initial public offerings, and private placements. The capital positions of the remaining banks are undergoing routine regulatory verification.
The programme is expected to enhance the stability and capacity of Nigeria’s banking sector, positioning banks to absorb shocks better and support increased lending. Market participants should continue to monitor compliance timelines and capital-raising activities as the recapitalisation exercise progresses toward completion.
CBN Issues Updated Guidelines on Dormant Accounts and Unclaimed Balances
The CBN issued a circular on its updated Guidelines on the Management of Dormant Accounts, Unclaimed Balances, and Other Financial Assets in Banks and Other Financial Institutions (OFIs) in Nigeria issued in 2024 introducing key changes to improve access, transparency, and compliance including; Banks and OFIs may adopt alternative (non-physical) channels for dormant account reactivation, subject to robust identity verification and risk management controls. They are also required to publish limited details of dormant accounts and unclaimed balances on their websites and annually in at least two national newspapers. There is also a mandatory affidavit requirement for reactivating dormant accounts
This move aims to ensure that owners can easily reclaim trapped funds. The economy may see stimulated spending based on the released assets, and regulatory compliance across the financial system will be strengthened.
CBN Issues Addendum to Revised BVN Regulatory Framework
The CBN issued an addendum to the Revised Regulatory Framework for Bank Verification Number (BVN) Operations and Watch-List for the Nigerian Banking Industry to strengthen measures for fraud prevention and customer data integrity. Key amendments include;
Access to BVN data remains restricted to CBN-licensed financial institutions. With this amendment, financial institutions will be able to implement quick fraud block to curb scams, and reduce systemic fraud risks, thereby stabilising financial flows. These provisions take effect from May 1, 2026, and all banks, other financial institutions, and payment service providers are expected to ensure strict compliance.
CBN Issues Updated Guidelines on ATM Operations in Nigeria
The CBN has issued revised Guidelines on the Operations of Automated Teller Machines (ATMs) in Nigeria, updating previous provisions from the 2020 Guidelines on Operations of Electronic Payment Channels in Nigeria. The updated guidelines establish minimum standards for ATM deployment, operations, and maintenance, aiming to improve access to services in both urban and rural areas, strengthen security protocols, enhance consumer protection, and align ATM operations with global best practices. The guidelines apply to all deposit money banks, other financial institutions, independent ATM deployers, and card-issuing institutions in Nigeria.
The CBN's revised ATM Guidelines impose stricter security protocols, encryption standards, fraud monitoring, and rural deployment mandates on all deposit money banks, financial institutions, ATM deployers, and card issuers to curb breaches and enhance consumer safeguards. Non-compliance risks operational suspensions and fines. Institutions must audit ATM networks, software integrations, and third-party contracts against new global-aligned benchmarks within 90 days. Update compliance roadmaps and train operations teams to pre-empt enforcement disruptions across urban-rural service delivery.
SEC Issues Guidelines on Revised Minimum Capital for Regulated Entities
SEC has issued guidelines under the Investments and Securities Act, 2025, prescribing revised capital requirements for all regulated capital market operators (CMOs). The guidelines are binding on existing operators, applicants, and any entity licensed, registered, or otherwise regulated by the Commission to perform capital market activities. CMOs performing multiple regulated functions must comply with the capital requirement applicable to each function.
Transitional arrangements require existing CMOs to meet the revised capital requirements by June 30, 2027, while new CMOs from January 16, 2026, must comply immediately. Applicants with pending applications as of January 16, 2026, must submit board-approved plans to meet the minimum capital requirement by June 30, 2027, and those with applications pending for 12 months or more must file fresh applications.
The guidelines aim to promote investor protection, enhance market resilience and integrity, establish a risk-sensitive capital framework, support effective supervision, and reinforce domestic and international confidence in the prudential soundness of the Nigerian capital market, consistent with IOSCO principles.
FMCIDE Rolls Out National Survey on Child Online Safety and Age Regulation
The FMCIDE rolled out a national survey initiative in partnership with the Nigeria Data Protection Commission (NDPC) to inform policy development on child online protection and age regulation in Nigeria. The survey seeks stakeholder input on key issues including age verification mechanisms, platform accountability, and regulatory safeguards to address risks such as cyberbullying, harmful content exposure, data misuse, and AI-related threats.
Online platforms will need to beef up their age gates, ensuring robust age verification. This would inadvertently raise the cost of privacy tech for these platforms, however we'd have better protected children, spurring ethical digital economy growth without stifling innovation.
FMCIDE Collaborates with Ministry of Education to Expand Internet Connectivity in Schools
The FMCIDE is collaborating with the Federal Ministry of Education to expand internet connectivity across schools nationwide as part of efforts to strengthen digital infrastructure in the education sector. The initiative builds on existing platforms such as the Nigerian Research and Education Network and aims to extend reliable connectivity across all levels of education, enable digital learning, support emerging technologies, including artificial intelligence, and facilitate the transition to computer-based testing for national examinations.
FMCIDE Secures FEC Approval for National Digital Postcode System
The FMCIDE has secured Federal Executive Council's approval for the implementation of an alphanumeric digital postcode system developed in collaboration with the Nigerian Postal Service (NIPOST) to modernise Nigeria’s national addressing framework. The system is expected to enhance postal efficiency, improve logistics and e-commerce operations, and support critical functions such as emergency response, national planning, and public service delivery, forming a key component of the country’s digital infrastructure development.
FMTI Deploys Products Authentication and Tracking System (PATS)
The Federal Ministry of Industry, Trade and Investment (FMITI) deployed the Products Authentication Tracking System (PATS) to combat counterfeit and substandard goods in Nigerian markets. The system would allow authorities to trace counterfeit products to their source while enabling consumers to verify authenticity directly. It is also expected to be deployed across key sectors including pharmaceuticals, food and beverages, electronics, textiles, chemicals and building materials, to ensure product integrity.
Benin, Liberia, and Sierra Leone Receive Funding from the World Bank Group to Facilitate Digital integration
The World Bank approved a $137 million regional initiative—WARDIP2—to accelerate digital integration and job creation in Benin, Liberia, and Sierra Leone, with the goal of expanding broadband access to about 5.2 million people, enabling 5.4 million new users of digitally enabled services, and supporting around 140 digital startups and 9,000 individuals through digital skills and entrepreneurship training in AI, cybersecurity, and digital finance. The program focuses on three pillars: upgrading digital infrastructure, improving the business and regulatory environment, and helping SMEs and startups scale through seed financing and cross‑border digital trade opportunities.
This move could deepen West Africa’s regional digital integration, attract more private‑sector investment, and create thousands of new digital‑economy jobs, especially for youth and women. However, risks include over‑reliance on external financing, uneven capacity among participating countries, and potential exclusion of rural or low‑literacy populations if digital‑inclusion safeguards are not strengthened.
Egypt Publishes National Guideline for Responsible AI Development
Egypt released National Guidelines for Trustworthy and Responsible AI through the National Council for Artificial Intelligence. The framework tiers AI risks from prohibited high-risk (Tier 1, e.g., sovereignty threats) to minimal-risk (Tier 4), mandating transparency, ethics, dual-checks for biometrics, and labeling for tools like chatbots. It covers full AI lifecycles with pillars of governance, stakeholder engagement, and sustainability, aligning with Egypt's 2025-2030 AI Strategy and Vision 2030.
Stakeholders will face higher upfront costs for audits but gain trust for market access and innovation in infrastructure/services. Economy targets boosting ICT's GDP share while curbing bias/failure risks. Regionally, Egypt leads North Africa as an AI readiness frontrunner, influencing AU strategies and spurring talent/FDI flows. However, there will be need to ensure harmonised standards to prevent policy fragmentation.
Zimbabwe Launches National AI Strategy
Zimbabwe launched its National AI Strategy, a comprehensive framework built on four pillars—Talent and Capacity Development, Infrastructure Sovereignty, AI Adoption, and Ethical Governance—to build a digitally agile nation. This strategy positions Zimbabwe as a proactive leader in African AI governance, potentially accelerating economic growth in resource-dependent industries like mining and agriculture while fostering regional tech collaboration. However, successful implementation will hinge on addressing infrastructure gaps and building robust ethical safeguards to mitigate risks like data privacy concerns and AI biases in a developing context.
The March Regulatory Digest highlighted the defining moments for Nigeria's regulatory advancement, with CBN-led financial safeguards and FMCIDE's digital infrastructure leaps converging to combat fraud, enhance market stability, and empower safer online ecosystems—unlocking economic potential while aligning with IOSCO and FATF benchmarks. These strides, mirrored by Egypt's and Zimbabwe's AI frameworks and West Africa's digital funding, position Africa as an emerging hub for ethical innovation, though sustained harmonisation and capacity-building will be key to mitigating compliance burdens and maximising inclusive growth.
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