The CBN discloses this in a circular tagged
‘FPR/DIR/PUB/CIR/001/072’ to banks and other financial institutions, which was
titled ‘Regulatory guidelines for change of operational licence for banks and
other financial institutions in Nigeria’, and dated 28 March 2023.
The draft was signed by the Director, Financial Policy and
Regulation Department, Chibuzor Efobi.
The circular stated, “Under these guidelines, the following
prohibitions/restrictions shall apply to eligible banks and OFIs applying for
conversion or re-categorisation. The bank or OFI shall not, pending when the
application is determined expand or reduce its current banking network;
“Roll-out new products and services; carry out any new
strategic banking activity but the settlement of rights and obligations shall
continue until extinguished in accordance with existing terms and conditions;
“Take any business decision after the conversion process was
commenced, except in line with the bank’s conversion strategy submitted to the
CBN; Engage in any banking activity specific to the proposed new licence; any
other requirement that may be prescribed from time to time by the CBN.”
The CBN stated that due to increasing requests from
financial institutions to either upgrade or convert to other licence regimes,
the draft guidelines aimed to provide clarity to eligible financial
institutions on regulatory requirements.