Exposure draft proposes stronger capital requirements, tighter control structures and expanded regulatory safeguards for banking groups….
The Central Bank of Nigeria (CBN) has released an exposure draft of revised guidelines aimed at reshaping the licensing and regulation of financial holding companies (FHCs) in the country, in a move designed to strengthen oversight of complex financial groups.
In a circular dated June 10 and addressed to financial holding companies, banks, other financial institutions and the general public, the apex bank said the proposed framework is intended to enhance regulatory effectiveness and improve the operational structure of FHCs.
The circular, signed by Rita Sike, Director of the Financial Policy and Regulation Department, noted that the existing guidelines first introduced in 2014 were designed to manage risks arising from non-core banking activities within financial conglomerates.
However, the CBN said its years of implementation have revealed gaps that now require updates to align with evolving market realities and regulatory expectations.
“Following several years of implementation, the CBN has identified areas within the extant guidelines that require enhancement to strengthen operational effectiveness and regulatory oversight of Financial Holding Companies,” the bank stated.
The proposed revision introduces stricter capital requirements for FHCs, with the CBN seeking to ensure that holding companies maintain sufficient financial buffers to support their subsidiaries during periods of stress.
According to the draft, stronger capitalisation is expected to reinforce the role of FHCs as stable sources of financial strength within banking groups.
The central bank also highlighted concerns around shared services arrangements within financial groups, noting that such structures could create opportunities for abuse or unfair advantages over regulated banking subsidiaries if not properly monitored.
Under the new proposal, the CBN seeks to tighten governance rules and close identified loopholes in intra-group service relationships.
The draft guidelines further introduce clearer eligibility criteria for promoters seeking to establish financial holding companies, aimed at ensuring only qualified and well-structured entities are granted licences.
In addition, the proposed framework includes changes to organisational structure rules, allowing financial holding companies rather than their Nigerian banking subsidiaries to directly hold equity interests in foreign subsidiaries.
On ownership and control, the CBN is proposing that financial holding companies must hold at least 51 per cent equity stake in each of their subsidiaries, alongside registration as entities with significant control under relevant corporate authorities.
The apex bank said the reforms are part of broader efforts to ensure greater transparency, stronger governance and improved risk management across Nigeria’s financial system.
It added that the exposure draft is open for public consultation, encouraging stakeholders to submit feedback before July 9, 2026, via policyandregulationsdivision@cbn.gov.ng.
The review marks another step in the CBN’s ongoing regulatory reforms as it seeks to modernise oversight frameworks and strengthen the resilience of Nigeria’s banking and financial services sector.
