The Central Bank of Nigeria (CBN) have announced the restriction of foreign banks operating in Nigeria from any major banking activities in the country.
In a circular issued by the Nigeria Apex bank, titled Guidelines for the regulation of representative offices of foreign banks in Nigeria. The CBN listed the permissible and non-permissible activities a foreign bank whose head office is outside the shore of Nigeria can undertake;
The non-permissible activities includes
(i) Provision of services designated in Nigeria as banking business.
(ii) Provision of any commercial or trading activity that may lead to the issuance of invoices for services rendered.
(iii) Acceptance of orders on behalf of the foreign parent.
(iv)Engage directly in any financial transaction, save for those transactions that are related to (3.1) above
Permissible activities are
(i) Marketing the products and services of its foreign parent or an affiliate of the foreign parent licensed and domiciled outside Nigeria.
(ii) Carrying out research activities in Nigeria on behalf of the foreign parent.
(iii) Serving as a liaison between the foreign parent and local banks, private institutions within Nigeria and other customers of the foreign parent based in Nigeria.
(iv)Pursue business opportunities for the foreign parent or affiliated institutions regarding the availing and/or syndication of foreign currency denominated loans.
(v) Connect banks and other financial institutions to its foreign parent.
