CBN Publishes Guidelines for Banking Operations in the Free Trade Zones in Nigeria

Regulators
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Tuesday, February 02, 2016 02:09 PM / CBN

 

Objectives

The objectives of these Guidelines are to –

a. complement and enhance the provisions of the Free Zones (FZs) Acts;

b. provide details of regulatory and supervisory requirements necessary to promote efficient and sustainable banking services in Nigeria’s FZs;

c. spell out details of permissible and prohibited activities of banks in Nigeria’s FZs;

d. provide details of incentives available to banks in Nigeria’s FZs. PART II

 

Establishment of a Bank to Operate In the Free Zones

 

Banks Operating in Nigeria’s Free Zones

 

(1) Banks and other financial institutions in Nigeria are licensed under the Banks and Other Financial Institutions Act (BOFIA), Cap B3, Laws of the Federation of Nigeria, 2004 (as amended), complemented by the directives and guidelines issued from time to time by the Central Bank of Nigeria (hereinafter referred to as “CBN”) to carry on banking business in accordance with the provisions of the Act.

 

(2) As from the commencement of these Guidelines, only banks or financial holding companies licensed under BOFIA, or licensed foreign banks shall qualify to apply to the Authority for approval to establish presence to carry on banking business in Nigeria’s FZs.

 

(3) The banks currently operating in the FZ before the issuance of these Guidelines shall, from the commencement of these Guidelines, regularize and comply with the provisions for establishing presence in the FZ. This should be done within six months of the issuance of the Guidelines.

 

(4) The provisions of Nigerian Export Processing Zone Authority (NEPZA) Act, Oil and Gas Free Zone Act, BOFIA, CBN Act, and NDIC Act and all guidelines and regulations issued pursuant to these Acts shall apply to banks operating in the FZs.

 

Click Here to Download Full Guidelines 

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