The Central Bank of Nigeria (CBN) has introduced a new regulatory proposal aimed at strengthening oversight of banks, fintech firms, and other financial institutions operating within the same corporate group.
Under the proposed framework, affiliated financial companies would be required to function more independently, with stricter safeguards designed to protect customer funds and improve transparency across the sector.
According to the draft guidelines, banks, payment companies, fintech firms, and related entities under shared ownership would need to maintain separate governance systems, risk controls, liquidity management, and capital structures.
A major provision in the proposal seeks to stop customer deposits from being used to support affiliated businesses. This means funds held by one financial institution cannot be redirected for intra-group lending, debt servicing, trading activities, or operational expenses of related companies.
The CBN is also proposing stronger customer data protections, requiring financial institutions within the same group to keep user information separately to reduce the risk of misuse or unauthorized access.
In addition, customers would need to provide clear consent before being enrolled in products or services offered by affiliated companies. Institutions would also be required to openly disclose business relationships and present alternative options where available.
The apex bank said the measures are intended to close regulatory gaps, reduce conflicts of interest, and limit financial risks that could spread across connected institutions.
The draft guidelines are currently open for public consultation, with stakeholder feedback expected before July 9, 2026. If adopted, the reforms could significantly reshape how banks and fintech companies operate in Nigeria’s financial sector.
