Connect with us

Business

CBN bans linked financial entities from extending loans to each other

Published

on



CBN

By Elizabeth Adegbesan

The Central Bank of Nigeria, CBN, has banned closely linked financial entities from extending loans or guaranteeing the obligations of one another without the bank’s prior approval.

The apex bank disclosed this, yesterday, in its Exposure Draft on ring-fencing operations of closely linked entities in the Nigerian financial system.

The apex bank stated: “Except with the prior written approval of the CBN, no closely linked entity shall extend a loan to, or guarantee the obligations of another.”

The guidelines also outlines measures to address different licence categories; mitigate risks from the co-mingling of customer funds with those of closely linked entities; provide additional governance requirements for closely linked entities; and support orderly resolution of distressed closely linked entities.

The guidelines stated, among other key principles, that closely linked entities shall operate independently and shall maintain adequate level of capital and liquidity resources sufficient to operate independently.

On other ring-fencing measures, CBN said: “The board of a closely linked entity shall ensure that the entity is legally, structurally and operationally independent of other entities that it is closely linked to.

“Each closely linked entity shall maintain its own governance, risk-management and control framework, including a dedicated Board.

“The boards of closely linked entities shall ensure that transactions between such entities are conducted at arm’s length and are properly documented.”

The apex bank warned that breach or failure to comply with the provisions of the guidelines shall attract appropriate sanctions, including penalties, replacement of management, and or revocation of licence in line with Bank and Other Financial Institutions Act, BOFIA 2020, and other relevant extant regulations.

The post CBN bans linked financial entities from extending loans to each other appeared first on Vanguard News.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business

Lekki Port Phase 2 construction set for kick-off, says Lagos govt

Published

on

By



Lekki Deep Seaport

By Godwin Oritse

Lagos State Governor, Babajide Sanwo-Olu, has announced that work on Phase 2 of the Lekki Port project will commence soon, a move aimed at strengthening the state’s position as West Africa’s leading maritime and logistics hub.

Speaking at the Invest Lagos Summit 3.0 held in Lagos earlier in this week, Sanwo-Olu highlighted the State’s commitment to expanding critical infrastructure and attracting investment.

He explained that the expansion of the Port will significantly enhance cargo handling capacity, strengthen maritime trade, and deepen Lagos’ role as a gateway to the African Continental Free Trade Area (AfCFTA) market of over 1.4 billion people.

He stated: “With AfCFTA creating a market of over 1.4 billion people and a combined GDP exceeding $3 trillion, Lagos occupies a uniquely strategic position.

“The Lekki Deep Sea Port, within five years, is moving to phase two because it is almost reaching the full potential of its installed capacity. And just within five years, it is moving to phase two. These are not just aspirations but projects that have been implemented and are under implementation. They have been funded, progressing, and transforming the investment landscape of our State”.

In his remark, the Managing Director, Lekki Port, Wang Qiang, commended the Lagos State Government for maintaining a stable and investment-friendly environment.

He noted that the next phase of development will play a key role in expanding the port’s operational and cargo-handling capacity, improving logistics efficiency along the Lekki corridor, and attracting additional global shipping and logistics investments.

Qiang noted that the expansion aligns with Nigeria’s broader trade facilitation agenda and the increasing demands of regional and international shipping networks.

He stated: “We are deeply encouraged by the continued support of the Lagos State Government, whose infrastructure-led policies have created a stable and forward-looking environment for long-term maritime investment.

“The commencement of the next phase of development represents a significant milestone in our journey to expand capacity, enhance operational efficiency, and strengthen Lekki Port’s position as a premier gateway for West African trade under the AfCFTA framework.”

The post Lekki Port Phase 2 construction set for kick-off, says Lagos govt appeared first on Vanguard News.

Continue Reading

Business

NNPCL, security agencies intensify crackdown on pipeline vandals

Published

on

By



NNPCL, security agencies intensify crackdown on pipeline vandals

By Udeme Akpan &  Obas Esiedesa

The Nigerian National Petroleum Company Limited (NNPC Ltd.) and security agencies have intensified efforts to combat pipeline vandalism following the discovery of a damaged section of the Nigerian Pipelines and Storage Company (NPSC) crude oil pipeline at Pai Community, Kwali Area Council of the Federal Capital Territory (FCT), Abuja.

The joint inspection involved NNPC’s Industry-wide Security Architecture (IWSA), NPSC, the Office of the National Security Adviser (ONSA) Special Prosecution Team (SPT), the FCT Police Command, the Nigerian Army and other security stakeholders.

The exercise was aimed at assessing the extent of damage, advancing investigations and strengthening coordinated measures to protect critical national energy infrastructure from economic sabotage.

The visit followed the arrest of three suspected pipeline vandals in Piri and Pai communities through a joint operation involving ONSA’s Special Prosecution Team, the FCT Police Command and NNPC Ltd.’s IWSA.

NPSC, a subsidiary of NNPC Ltd., operates more than 5,000 kilometres of crude oil and petroleum products pipelines across Nigeria. However, pipeline attacks have increased in recent years, with criminal groups targeting infrastructure for illegal removal and theft.

Industry records show that 19 pipeline vandalism cases were recorded in 2025, leading to the theft of about nine kilometres of pipeline sections along the Enugu-Makurdi-Yola route and the Piri-Izom section of the Warri-Kaduna pipeline corridor.

So far in 2026, five cases have been reported, including incidents around Piri-Kwali and Gwagwalada along the Warri-Kaduna crude oil pipeline route, as well as Badanga on the Jos-Gombe pipeline corridor.

Speaking during the inspection, Group Chief Executive Officer of NNPC Ltd., Engr. Bashir Bayo Ojulari, represented by Chief Interface Officer, Dahiru Sani-Gwarzo, said the arrests represented an important step towards dismantling criminal networks behind attacks on energy infrastructure.

He said the security architecture was focused not only on apprehending those directly involved but also identifying sponsors and receivers of stolen pipeline materials.

The post NNPCL, security agencies intensify crackdown on pipeline vandals appeared first on Vanguard News.

Continue Reading

Business

MTN Nigeria committed to transparency, consumer education  — CEO

Published

on

By



MTN’s public offer of 575m shares ends

By Peter Egwuatu

MTN Nigeria, MTNN Plc, has expressed its commitment to transparency and consumer education in its drive to strengthen trust, and promote greater digital literacy as data continues to play a central role in everyday life.

Dr Karl Toriola, Chief Executive Officer, MTNN, stated this at its public engagement platform code-named  Data on Trial  designed to address consumer concerns about mobile data usage, billing transparency, and digital consumption, stressing that the organisation is committed to transparency in both its financial performance and operations since it is a quoted company on  Nigerian Exchange Limited, NGX.

He stated: “Data on Trial  was created based on a simple belief. Trust, with our customer, grows when they are given access to the information and they are allowed to make up their mind about it. Today’s event is an opportunity for everyone to understand the facts, understand the technology behind what delivers technology in real time, and to ask the most difficult questions and hear different perspectives”.

Throughout the event, MTN’s technical experts responded to questions frequently raised by consumers, including concerns around data depletion, billing accuracy, background application activity, automatic updates, cloud synchronisation, video streaming, and multi-device connectivity.

The post MTN Nigeria committed to transparency, consumer education  — CEO appeared first on Vanguard News.

Continue Reading

Trending