28 August 2008
Lagos — A new framework for ownership of commercial banks in the country was unfolded yesterday in Abuja by the Central Bank of Nigeria (CBN).
The framework seeks to open Nigeria's economy to become a financial hub in the world by 2020.
According to the new framework, foreign investors seeking to establish a bank should not be companies incorporated in offshore centres or tax havens such as Gibraltar and The Cayman Islands among others.
For an investor to obtain Approval in Principle, the apex bank said such an investor needed to make a formal application for a licence to carry on the business of banking in Nigeria.
Specifically, the banking watchdog said the application must be submitted with a non-refundable application fee of N500,000.
Besides, such application according to the CBN, must be accompanied by a minimum capital deposit of N25 billion with the CBN on application with evidence of deposit by each shareholder.
"The source of capital contribution by each shareholder/subscriber would subsequently be verified by bank examiners," the guidelines said.
Besides, the new guidelines require that promoters of the new banks must state clearly in their feasibility report the sources of capital contribution from each investor.
In addition to these, the apex bank said fitness and appropriateness of the promoters would be ascertained through security screening and status enquiry from the Securities and Exchange Commission (SEC), Nigerian Deposit Insurance Corporation (NDIC), National Insurance Commission (NAICOM), Credit Bureau and reference to CBN's black book maintained by the Bankers Committee.
It also said the promoters of the new financial firm must sign an undertaking that the bank would be adequately capitalised for the volume and character of its business at all times.
The investors are to also provide a five-year financial projection.
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