The Central Bank of Nigeria (CBN), has issued approved guidelines for the regulation of representative offices of foreign banks in Nigeria.
This, it said, is in furtherance of the bank’s mandate to promote financial system stability.
According to a statement obtained from CBN’s website, the Guidelines for the Regulation of Representative Offices of Foreign Banks in Nigeria is meant to facilitate the understanding of regulatory requirements for operations of representative offices of foreign banks in Nigeria.
“Furthermore, the issuance of the Guidelines is in pursuant to Sections 6(1) and 8 (71) of the Banks and Other Financial Institutions Act 2020 (BOFIA) respectively which states that “no foreign bank shall operate in Nigeria without prior approval of the CBN”. Both sections have necessitated the development of the Guidelines for the Regulation of Representative Offices of Foreign Banks in Nigeria.
“Consequently, all already approved/existing representative offices of foreign banks operating in Nigeria are required to ensure strict compliance with the Guidelines within 6 months from the date of this circular,” the statement read in part.