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E-Financial

CBN Releases Guidelines, Framework for Mobile Money Services

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The Central Bank of Nigeria, CBN, today released Regulatory Guidelines and Framework for Mobile Money Services in the country.

According to CBN, the introduction of mobile telephony in Nigeria and its rapid growth and adoption among other factors have underscored its decision to issue the framework as it will create an enabling environment for the orderly introduction and management of mobile money services in Nigeria.

It said: “The Framework defines the regulatory environment as a policy path towards achieving availability, acceptance and usage of mobile payment services.”

The apex bank also said that the objectives of the guidelines are to ensure a structured and orderly development of mobile money services in Nigeria, with a clear definition of various participants and their expected roles and responsibilities; Specification of the minimum technical and business requirements for the various participants recognized for the mobile money services industry in Nigeria; and promote safety and effectiveness of mobile money services and thereby enhance user confidence in the services.

The Guidelines on Mobile Money Services stated that the  Mobile Money Operators (MMOs)shall not carry out the following activities: Grant any form of loans, advances and guarantees (directly or indirectly); Accept foreign currency deposits; Deal in the foreign exchange market except as prescribed in Section 4.1 (ii & iii) of the extant Guidelines for Licensing and Regulation of Payment Service Banks in Nigeria; Insurance underwriting;  Accept any closed scheme electronic value (e.g. airtime) as a form of deposit or payment; Establish any subsidiary; Undertake any other transaction which is not prescribed by these Guidelines; And any other activities that may be prohibited by the CBN.

On interest distribution on savings wallet, Section 10.1.3  stated: “Fees and charges for the management of the investment shall not be more than 10 per cent of interest income on savings wallet funds investment; Where an MMO operates a savings wallet, i.e., a wallet earning interest, it shall expressly inform subscribers of the following:

“The minimum balance on the savings wallet that qualifies to earn interest; The allowable number of withdrawals to be entitled to earn interest; The minimum savings period to earn interest; The applicable balance that would earn interest;

The procedure for determining interest amount distributable to subscribers should stipulate the minimum percentage of interest income to be distributed to subscribers and the proportion to be retained by the MMO, if applicable; The applications of section 10.1.3 (b) (i) to (v) in distributing interest shall be automated.

“The section further stated: “On no account whatsoever, shall a Mobile Money savings wallet account holder suffer diminution in the principal sum on his/her wallet as a result of fees or charges; Deposit Money Banks serving as settlement banks are prohibited from off-setting

any other transactions of the MMO, including the transaction wallet pool accounts, against the savings wallet principal pool accounts and savings wallets interest pool account; and MMOs shall comply with the minimum disclosure requirements on the financial statements as stipulated by the Bank”

” Funds on saving wallets shall be invested in only the Nigerian Treasury Bills (NTB); MMOs shall be treated as mandate customers of CBN for NTB subscription through the CBN NTB window, and MMOs shall have a process to determine appropriate cash balance on its Savings Wallet Principal Pool Account that will meet its savings wallets customers’ withdrawal requirements at every point in time.”


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E-Financial

CBN Reaffirms Banking Sector Resilience as Forbearance Ends

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The Central Bank of Nigeria (CBN) has reaffirmed the resilience and soundness of the Nigerian banking sector while unveiling a set of targeted transitional measures affecting a select number of financial institutions.

These measures represent the final phase in winding down the temporary regulatory accommodations introduced in the aftermath of the COVID-19 pandemic, and are intended to consolidate the gains achieved during that period of exceptional support.

The measures, announced in a circular signed by Hakama Sidi Ali, acting director of Corporate Communications, are not broad-based but instead apply to a limited group of banks. They include temporary restrictions on actions such as the payment of dividends and the disbursement of bonuses to executive management.

According to the CBN, these restrictions are meant to conserve internal capital, strengthen capital adequacy, and bolster long-term institutional resilience. The banks affected have been formally notified and are currently under enhanced regulatory engagement and close supervisory monitoring.

The regulatory move forms part of the CBN’s sequenced and structured implementation of the banking sector recapitalisation programme, which was formally introduced in 2023.

The programme is designed to align the banking sector with Nigeria’s broader economic development goals and ensure banks remain well-capitalised in line with the evolving demands of a growing economy. The majority of Nigerian banks have either met or are firmly on track to meet the new capital thresholds ahead of the March 31, 2026 deadline set by the apex bank.

To support this transition, the CBN said it is providing narrowly defined allowances within its capital framework, ensuring flexibility without compromising prudential standards. These provisions are fully aligned with global best practices and reflect the CBN’s commitment to maintaining a forward-looking, risk-based regulatory environment.

In fact, Nigeria’s Risk-Based Capital requirements already exceed the minimum benchmarks set by the Basel III framework, highlighting the regulator’s proactive posture in safeguarding the financial system.

The central bank stressed that these actions are entirely routine within the broader framework of supervisory oversight and reflect international standards.

Emphasising its ongoing commitment to transparency and collaboration, the CBN reaffirmed that it will continue to engage stakeholders across the financial industry through established platforms including the Bankers’ Committee, the Body of Bank CEOs, and other relevant industry groups.

The engagement is expected to ensure that regulatory changes are well-understood, predictable, and effectively implemented with industry input.

The CBN restates that Nigeria’s banking system remains fundamentally strong, stable, and well-capitalised. The transitional guidelines announced do not signal distress within the system but are instead part of a broader, methodical reform process aimed at future-proofing the sector.

The apex bank underscored that these steps are designed to ensure that the banking industry remains a solid foundation for inclusive, sustained economic growth and national development.

 


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E-Financial

SEC Working on Stablecoin Regulation Framework

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Securities and Exchange Commission (SEC) is working with developers to establish a regulatory framework for stablecoins, according to Dr. Emomotimi Agama, director-general, SEC.

SEC Working on Stablecoin Regulation Framework

Agama made this announcement during his keynote speech at the 2025 Decentralized Finance (DeFi) Conference.

Agama said the SEC’s commitment is to foster a responsible decentralized finance environment.

“The commission believes responsible DeFi can thrive in a regulated environment,” he said, highlighting the SEC’s efforts to enhance investor education through its “Crypto Smart, Nigeria Strong” initiative.

The program aims to educate young investors across schools, universities, and social media on blockchain basics, scam detection, and long-term investing benefits.

The SEC is also focusing on regulatory evolution, with plans to streamline its licensing regime.

“We are enhancing our licensing architecture to make it more efficient, more transparent, and more risk-based,” Agama noted.

The commission is exploring a framework for naira-pegged stablecoins, backed by verifiable reserves and audited by independent custodians, to facilitate cross-border trade and programmable finance.

It is also reviewing pathways for digital asset Exchange Traded Funds (ETFs), custodial wallets for pension funds, and tokenized securities for institutional investors.

 

 


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E-Financial

CBN Issues Transitional Guidance, Says Banks are Healthy

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Central Bank of Nigeria (CBN) has introduced time-bound measures for a small number of banks still completing their transition from the temporary regulatory support provided.

CBN Issues Transitional Guidance, Says Banks are Healthy

The CBN stated yesterday that this step is a response to the economic impact of the COVID-19 pandemic.

This step, the CBN said, is part of its broader, sequenced strategy to implement the recapitalisation programme announced in 2023.

CBN disclosed that the programme, which aligns with Nigeria’s long-term growth ambitions, has already led to significant capital inflows and balance sheet strengthening across the sector.

It said most banks have either completed or are on track to meet the new capital requirements well before the final implementation deadline of March 31, 2026.

It added that the measures announced apply only to a limited number of banks saying that these include temporary restrictions on capital distributions, such as dividends and bonuses, to support the retention of internally generated funds and bolster capital adequacy.

A statement by Mrs Hakama Sidi Ali, acting director, Corporate Communication of the apex bank,  explained that all the affected banks have been formally notified and remain under close supervisory engagement.

“To support a smooth transition, the CBN has allowed limited, time-bound flexibility within the capital framework, consistent with international regulatory norms. Nigeria generally maintains Risk-Based Capital requirements that are significantly more stringent than the global Basel III minimums.

“These adjustments reflect a well-established supervisory process consistent with global norms. Regulators in the U.S., Europe, and other major markets have implemented similar transitional measures as part of post-crisis reform efforts,” the bank stated.

It further added that it remains fully committed to continuous engagement with stakeholders throughout this period via the Bankers’ Committee, the Body of Bank CEOs, and other industry forums.

The goal is to ensure a transparent, predictable, and collaborative regulatory environment.

It assured that Nigeria’s banking sector remains fundamentally strong, explaining that the new measures are neither unusual nor cause for concern; they are a continuation of the orderly and deliberate implementation of reforms already underway.


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