The Central Bank of Nigeria (CBN) has published a draft revised guidelines governing the Licensing and Regulation of Financial Holding Companies (FHCs) in Nigeria, inviting banks, financial institutions, and members of the public to submit feedback before July 9, 2026.
The proposed revisions, announced through a circular signed by the Director of Financial Policy and Regulation Department, represent the first major overhaul of the framework since the original guidelines were issued in 2014.
According to CBN, the review of the old guidelines revealed gaps that needed to be addressed to strengthen regulatory oversight and the operational effectiveness of financial holding companies.
The apex bank noted that the revisions were also necessary to align the framework with evolving regulatory standards and market developments.
The original 2014 guidelines were designed primarily to contain risks arising from non-core banking activities conducted within banking groups,
The proposed review touches on five key areas that require enhancement to strengthen the operational effectiveness and regulatory oversight of Financial Holding Companies:
1. Strengthening Capital Requirements: Clarification and enhancement of minimum capital requirements for FHCs to ensure their capacity to serve as a reliable source of financial strength to their subsidiaries;
2. Regulation of Shared Services: Addressing identified gaps in shared services arrangements to prevent potential abuse or undue advantage over banking subsidiaries;
3. Eligibility Criteria: Establishment of clear eligibility requirements for promoters seeking to set up Financial Holding Companies;
4. Organisational Structure: Streamlining the structure of FHCs by allowing them, rather than their Nigerian banking subsidiaries, to directly hold equity interests in foreign subsidiaries; and
5. 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.
