New merger and acquisition guidelines for foreign banks
TradeInvestNigeria Staff
Posted on: Wed, 18 Jun 2008
The foreign bank must have operated in Nigeria for at least five years;
it must have established branches in at least two thirds of the states in Nigeria, excluding Abuja; and
the foreign bank is not expected to have more than a 40% stake in a local Nigerian bank.
TradeInvestNigeria Staff
Posted on: Wed, 18 Jun 2008
The Central Bank of Nigeria (CBN) has laid down new guidelines for the entry of foreign banks into Nigeria.
Some of the new rules for foreign banks that wish to merge with or acquire a local Nigerian bank are:
The new policy is to protect local banks with a large branch network from foreign dominance. It will also force foreign banks to reach out to the unbanked in the more remote parts of Nigeria and not only focus on a few metropolitan areas.
According to the CBN, foreign banks should however feel free to enter the Nigerian market. Foreign banks who wish to set-up shop in Nigeria must meet the minimum capital requirement of N25 billion and some other regulatory requirements.
