Connect with us

Business

New CBN rule requires investors to get approval to acquire 5% stake in holding companies

Published

1 year ago

on

The Central Bank of Nigeria (CBN) has restricted the acquisition of controlling stakes in financial holding companies (FHCs).

The apex bank said any investor looking to acquire up to 5 percent of any FHC would need prior approval from it.

A FHC is a company that controls a group of financial institutions engaged in financial activities such as insurance, banking and securities dealing.

Banks such as UBA Group, First City Monument Bank (FCMB), Stanbic IBTC Bank, Access Bank and First Bank have adopted the holding company structure to diversify their portfolio and earnings.

The directive is contained in a circular dated July 13, 2023 and signed by Chibuzo Efobi, director of the financial policy and regulation department.

The circular titled ‘Corporate Governance Guidelines’ was addressed to all commercial, merchant, non-interest and payment service banks, and financial holding companies.

The CBN said the effective date of the new guidelines is August 1, 2023.

The regulation reads: “Except with the prior written approval of the CBN, no FHC or any of its director, shareholder or agent shall enter into an agreement which results in:

i. a change in the control of the FHC, the transfer of shareholding of five per cent (5%) and above in the FHC; and/or an increase in shareholding to five per cent (5%) or more in the FHC.

Provided that CBN’s prior approval and No Objection shall be sought and obtained, before any acquisition of shares of an FHC by an investor (including through the capital market), that would result in equity holding of five per cent (5%) and above.

“ii. the sale, disposal or transfer of the whole or any part of the business of the FHC;
iii. the acquisition or merger of the FHC;
iv. the reconstruction of the FHC; or
v. the employment of a management agent, management by or transfer of its business to any such agent.”

The CBN said that no one can own a controlling stake in more than one bank, except a prior approval is obtained.

The apex bank added that subsidiaries of an FHC were prohibited from acquiring shares in its FHC and/or other subsidiaries within the group.

The CBN said in cases where it has an objection to any of the acquisition, the notice of the objection would be communicated to the FHC, and the company is expected to notify such investor(s) within 48 hours.

Related Topics:

Business

Nigeria’s GDP rate grew by 3.46% in Q3 2024, says NBS

Published

46 mins ago

on

November 25, 2024 1:29 pm

By

The National Bureau of Statistics (NBS) says Nigeria’s annual gross domestic product (GDP) grew by 3.46 percent in the third quarter (Q3) of 2024.

The NBS, in its GDP report published on Monday, said the growth rate is higher than the 3.19 percent recorded in Q2 2024.

Continue Reading

Business

Dangote refinery reduces ex-depot price of petrol to N970 for oil marketers

Published

3 hours ago

on

November 25, 2024 11:01 am

By

The Dangote Petroleum Refinery has announced a reduction in its ex-depot price of premium motor spirit (PMS), also known as petrol, to N970 per litre for oil marketers.

This is a cut from the refinery’s N990 ex-depot price announced earlier this month, according to a statement on Sunday.

The slash would help marketers save about N20 on each litre of petrol bought from the Lekki-based plant.

Anthony Chiejina, Dangote Group’s chief branding and communications officer, said the move is the refinery’s way of appreciating Nigerians “for their unwavering support in making the refinery a dream come true”.

“In addition, this is to thank the government for their support as this will complement the measures put in place to encourage domestic enterprise for our collective well-being,” the statement reads.

“While the refinery would not compromise on the quality of its petroleum products, we assure you of best quality products that are environmentally friendly and sustainable.

“We are determined to keep ramping up production to meet and surpass our domestic fuel consumption; thus, dispelling any fear of a shortfall in supply.”

Continue Reading

Business

Allegation of missing fund untrue, says Access Bank

Published

5 hours ago

on

November 25, 2024 9:16 am

By

Access Bank Limited has dismissed as untrue allegations of missing fund and unethical behaviour.

The Bank in a statement said: “Our attention has been drawn to a video on social media wherein allegations of missing funds and unethical behaviour have been made against Access Bank PLC.

“First and foremost, we wish to emphasise that the safety and security of our customers’ funds are core priorities which we take seriously. Second, Access Bank Plc does not engage in or condone any unethical behaviour.

“In the instant case, the allegations of missing funds in the Bank are most untrue and baseless.

“There is no N500million or any other fund or amount missing from the subject customer’s account or from any other customer’s account with us.

“We and other independent stakeholders in the banking industry have thoroughly investigated these allegations and independently arrived at the same conclusions.

“Access Bank PLC operates with the highest ethical standards, and we protect our customers’ interests whilst also respecting privacy laws.

“Consequently, whilst we have engaged and will continue to engage with our customers, we must advise the public not to rely on or believe sensational and unverified claims that are designed to titillate and mislead the public.

“We remain committed to serving our customers.”

Continue Reading

Bodex F. Hungbo, SPMIIM is a multiple award-winning Nigerian Digital Media Practitioner, Digital Strategist, PR consultant, Brand and Event Expert, Tv Presenter, Tier-A Blogger/Influencer, and a top cobbler in Nigeria.

She has widespread experiences across different professions and skills, which includes experiences in; Marketing, Media, Broadcasting, Brand and Event Management, Administration and Management with prior stints at MTN, NAPIMS-NNPC, GLOBAL FLEET OIL AND GAS, LTV, Silverbird and a host of others

Most Read...