In an increasingly regulated financial environment, Nigerian banks face mounting pressure to demonstrate transparency, accountability, and strict adherence to compliance frameworks set by regulatory bodies such as the Central Bank of Nigeria (CBN), the Nigeria Financial Intelligence Unit (NFIU), and the Financial Reporting Council of Nigeria (FRCN). This review paper explores the role of Business Requirements Documentation (BRD) as a strategic tool for strengthening financial compliance mechanisms in Nigerian banking institutions. It highlights how a well-structured BRD process supports the translation of regulatory expectations into actionable internal policies and system functionalities. Drawing on both theoretical insights and practical case studies, the paper examines the interrelationship between requirements engineering, compliance auditing, data governance, and digital transformation in banking operations. Furthermore, it identifies gaps in current documentation practices, such as ambiguity, poor stakeholder engagement, and siloed communication, that compromise compliance outcomes. By synthesizing existing literature and regulatory guidelines, this paper proposes a structured BRD framework tailored to the Nigerian context—emphasizing traceability, version control, stakeholder mapping, and regulatory alignment. The findings underscore the urgent need for banks to institutionalize BRD as part of their compliance and risk governance culture, especially in light of evolving threats such as fraud, money laundering, and cybercrime. The paper concludes with recommendations for capacity building, tool adoption, and collaboration between IT, compliance, and audit functions to operationalize BRD for sustainable regulatory performance.