The Central Bank of Nigeria (CBN) has prohibited foreign banks with representative offices in Nigeria from, among other things, offering services categorised as "banking businesses."
In its Guidelines for governing representative offices of foreign banks in Nigeria, the apex bank made this disclosure yesterday.
The CBN claims that the directive completes its regulation of the range of banking activities and related issues.
Listing the non-permissible activities for foreign banks operating in the country, the guideline stated: “Approved Representative Offices shall not engage in the following services/activities; Provision of services designated in Nigeria as banking business; Provision of any commercial or trading activity that may lead to the issuance of invoices for services rendered; and Acceptance of orders on behalf of the foreign parent; and engage directly in any financial transaction.’’
However, the CBN guideline added: “Representative offices of foreign banks serve an essential purpose of showcasing the brand and services of its parent company. It can also stimulate foreign direct investment in the host country by connecting the capital to various investment opportunities.
“It is in view of these that the CBN issues these guidelines, to specify the requirements for the licensing and operations of approved representative offices of foreign banks in Nigeria.”