Business
CBN Issues Guidelines For Payments Service Holding Companies
The Central Bank of Nigeria, CBN, has issued guidelines for licensing and regulation of Payments Service Holding Companies, PSHCs, in the country.
The apex bank, yesterday, disclosed this in a circular to all Deposits Money Banks, Payment Service Providers and Other Financial Institutions.
The guidelines, stated: “The regulation requires companies desirous of operating more than one licence category, to set up a PSHC, with activities of subsidiaries clearly delineated.
This arrangement would prevent commingling of activities, facilitate management of risks and enable the CBN exercise adequate regulatory oversight on all the companies operating within the Group.
“The affected regulated payment activities are: Mobile Money Operations, Switching and Processing, Payment Solution Services and any other activity as may be approved by the CBN.”
On activities that are permissible and non permissible, the guidelines stated: “Except as listed in Section 5.2, the activities of the PSHC shall be restricted to the holding of equities in financial and technological subsidiaries that facilitate and/or enhance innovative digital financial services.
The PSHC can provide broad policy direction, shared services and/or enter into technical or management service contract with any of its subsidiaries, with the prior written approval of the CBN, in respect of the following areas: Human Resources services; Risk Management services; Internal Control services; Compliance services; Information and Communication Technology; Legal services; Facilities (office accommodation including electricity, security, cleaning services in that accommodation); and, Any other services as may be approved by the CBN from time to time.
“Shared services shall be provided on arm’s length basis. Transactions in respect of such services shall require the consent of the Board of Directors of the subsidiary.
“A PSHC is prohibited from undertaking the following activities: Establishment, divestment and closure of subsidiaries, without the prior written approval of the CBN.
“Deriving or receiving income from sources other than as listed herein: Dividend income from its subsidiaries/associates; Income from shared services, where applicable; Interest earned from idle funds invested in government securities or placement with licensed financial institutions.
“Patents, royalties and copyrights; Profit on divestment from subsidiaries/associates; and any other source as may be approved by the CBN.
Business
NEXIM Bank Secures Bbb+ Rating from Agusto & Co., Declares ₦30.47 Billion Operating Profit
By Joel Ajayi
The Nigerian Export-Import Bank (NEXIM) has been assigned a Bbb+ rating by leading credit rating agency Agusto & Co. Limited, affirming its satisfactory financial condition and strong capacity to meet obligations relative to other development finance institutions (DFIs) in Nigeria.
For the year ended 2024, NEXIM Bank reported an operating profit of ₦30.47 billion, more than double the ₦13.75 billion recorded in the previous year. This remarkable growth underscores the Bank’s financial resilience and operational efficiency.
Established to promote Nigeria’s non-oil exports and support import-substituting businesses, NEXIM is fully owned by the Federal Government of Nigeria through equal shareholding by the Central Bank of Nigeria (CBN) and the Ministry of Finance Incorporated (MOFI).
The Bank has sustained strong liquidity and capital adequacy ratios, alongside notable growth in its loan book and equity investments. Key sectors supported include manufacturing, agriculture, solid minerals, and services.
According to Managing Director, Mr. Abba Bello, NEXIM has intensified its intervention in the non-oil export sector, disbursing over ₦495 billion and facilitating the creation and sustenance of more than 36,000 direct and indirect jobs.
Among the Bank’s key initiatives are:The Regional Sealink Project: A public-private partnership designed to improve maritime logistics across West and Central Africa. Promotion of Factoring Services: Offering alternative export financing solutions for SMEs. And Joint Project Preparation Fund (JPPF): Implemented in partnership with Afreximbank to enhance the bankability of export projects.
Additionally, NEXIM is developing tailored financing schemes for the mining sector, including Contract Mining, Equipment Leasing, and Buyers’ Credit/ECA Financing, aimed at unlocking export potential and boosting foreign exchange earnings.
With its renewed drive, NEXIM Bank remains committed to building local processing capacity, advancing Nigeria’s competitiveness in global trade, and strengthening non-oil export revenues by moving up the commodity value chain.
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