Banks supporting unlicensed foreign companies will face CBN sanctions

By connecting capital to different investment opportunities, it could also encourage foreign direct investment in the host nation.

In light of these, the Central Bank of Nigeria issued this directive outlining the conditions for the authorization and operation of authorized representative offices of foreign banks in Nigeria.

The CBN noted that the rules applied to banks licensed under any foreign laws whose registered head office is outside of Nigeria; any financial institution licensed under foreign laws whose primary business includes the receipt of deposits, the granting of loans, and/or the provision of current and savings accounts; and any foreign-owned operating bank/financial holding company that is foreign-based and owns a controlling interest in one or more banks or institutions whose primary business includes the receipt of deposits.