By George OPARA
The Central Bank of Nigeria (CBN) has rolled out a draft of revised guidelines for the licensing and regulation of Financial Holding Companies (FHCs).
It also seeks comments and recommendations from banks, financial institutions, industry stakeholders, and members of the public before July 9, 2026.
Spear News Nigeria gathered that the new set of rules are meant to strengthen the regulatory framework governing FHCs and aligning it with evolving market realities, emerging risks, and global regulatory standards.
The recommendations are expected to enhance corporate governance, improve supervisory oversight, and promote the stability of Nigeria’s financial system.
The apex back clarified that the subsisting guidelines, introduced in 2014, were primarily designed to manage risks arising from non-core banking activities within banking groups.
But developments in the financial services industry have necessitated a comprehensive review of the framework to resolve identified gaps and emerging challenges.
The draft guidelines focus on five critical areas. First, the CBN proposes stronger capital requirements for FHCs, including clearer provisions on minimum capital thresholds to ensure they remain a dependable source of financial strength for their subsidiaries.
Second, the review seeks to tighten regulations around shared services arrangements among group entities. This is intended to address loopholes that could result in abuse or provide unfair advantages to banking subsidiaries.
Third, the revised framework introduces clearer eligibility criteria for promoters seeking to establish Financial Holding Companies, thereby ensuring that only qualified investors and institutions participate in the sector.
The fourth proposal relates to organisational structure. Under the new arrangement, FHCs would be permitted to directly hold equity interests in foreign subsidiaries, replacing the current structure where Nigerian banking subsidiaries often assume that role.
Finally, the CBN is proposing stricter ownership and control requirements, including a mandate that FHCs maintain at least a 51 percent equity stake in each subsidiary and be recognised as persons with significant control by the appropriate corporate registration authority.
The regulator noted that stakeholder feedback will play a key role in shaping the final guidelines before implementation.
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