Central Bank of Nigeria (CBN) has warned banks against harbouring and backing unlicensed foreign firms.
CBN said the directive titled “Guidelines for the Regulation of Representative Offices of foreign Banks in Nigeria” was to improve the country’s financial sector.
Muhammad Musa, director, Financial Policy and Regulation Department, CBN, in the document, said anybody found wanting in backing an unlicensed financial institution in Nigeria shall be liable to sanctions, including suspension and revocation of their bank license.
The development comes amid the apex banks’ effort to gear up for foreign direct investment in Nigeria.
CBN’s latest directive is in line with its mandate under Sections 6(1) and 8(1) of the Banks and Other Financial Institutions Act 2020(BOFIA), indicating that “no foreign bank shall operate in Nigeria without prior approval of the CBN”.
According to data from the CBN, Foreign Direct Investment in Nigeria increased by 752.71 USD Million in the fourth quarter of 2022