The Central Bank of Nigeria (CBN) has released an exposure draft of the revised guidelines for the licensing and regulation of financial holding companies (FHCs/HoldCos) in Nigeria.
In a circular dated June 10 and issued to financial holding
companies, banks, other financial institutions and the public, the apex bank
said the review is aimed at strengthening regulatory oversight and enhancing
the operational effectiveness of FHCs.
The circular was signed by Rita Sike, director of the
financial policy and regulation department.
The CBN said it introduced the guidelines in 2014 to
mitigate risks arising from non-core banking activities conducted within
banking groups.
“Following several years of implementation, the CBN has
identified areas within the extant Guidelines that require enhancement to
strengthen the operational effectiveness and regulatory oversight of Financial
Holding Companies,” the circular reads.
“Accordingly, the guidelines have been reviewed to address
observed gaps and align with evolving regulatory and market developments.”
Among the proposed changes is a strengthening of capital
requirements for financial holding companies.
The apex bank said the revision would clarify and enhance
minimum capital requirements to ensure FHCs can serve as a reliable source of
financial strength to their subsidiaries.
The revised draft guidelines also seek to address gaps in
shared service arrangements within financial groups to prevent potential abuse
or undue advantage over banking subsidiaries.
“Eligibility Criteria: Establishment of clear eligibility
requirements for promoters seeking to set up Financial Holding Companies,” CBN
added.
“Organisational Structure: Streamlining the structure of
FHCs by allowing them, rather than their Nigerian banking subsidiaries, to
directly hold equity interests in foreign subsidiaries.
“Ownership and Control Requirements: Requiring FHCs to hold
a minimum of 51% equity stake in each subsidiary and to be registered as a
person with significant control by the appropriate corporate registration
authority.”
The CBN said the exposure draft is open for public review,
urging stakeholders and members of the public to submit their comments via
email to policyandregulationsdivision@cbn.gov.ng on or before July 9, 2026.
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