Court Voids Fraudulent Preferential Payments Made by Directors of Distressed Company

The High Court recently delivered a ruling in respect of an application by the administrator (the Applicant) of Malde Holdings Limited (the Company) against the directors of the Company and a tenant of the Company. The court allowed the application which sought to void preferential payments made by and for the benefit of the directors of the Company and a third party, who were all unsecured creditors, for two years immediately preceding the onset of insolvency of the Company and whilst the application to place the Company under administration was pending determination by the High Court.

CBN Revised Guidelines for International Money Transfer Services

The Central Bank of Nigeria (CBN) recently released the revised Guidelines for International Money Transfer Services in Nigeria (the Guidelines) which effectively repealed the previous guidelines issued in 2014 (the 2014 Guidelines). The Guidelines were issued in light of the recent reforms to liberalise the foreign exchange market, and to boost diaspora remittances and other foreign capital inflows to Nigeria, among others.

Fintech M&A in Nigeria: Key Considerations and Projections

Nigeria’s financial technology (fintech) industry has experienced unprecedented growth over the last decade, and this has transformed the country’s financial landscape. The fintech industry offers innovative solutions by facilitating financial payments, access to credits and consumer financing solutions, flexible savings, and investment products. A sizeable youth population, increased smartphone penetration, and regulatory developments have engineered a thriving fintech industry in Africa, particularly in Nigeria.

CBN Issues New Guidelines On International Money Transfer Services

The Central Bank of Nigeria (CBN) recently issued two (2) policies that pertain to foreign exchange remittances – the Guidelines for the Operation of International Money Transfer Services in Nigeria (the IMTO Guidelines) and the circular on the Removal of Allowable Limit of Exchange Rate Quoted by the International Money Transfer Operators (the Allowable Limit Circular). These policies are aimed at addressing the issues of foreign exchange volatility.

Powering Nigeria: A Recap of Developments in the Electric Power Sector

The year 2023 recorded significant legal milestones in the Nigerian Electric Supply Industry (NESI) owing to an amendment to the Constitution that allows states to establish electricity markets within the states and the enactment of the Electricity Act, 2023 (the Electricity Act or the Act). The Electricity Act repealed the Electric Power Sector Reform Act, 2005 and enacted policies towards propelling the NESI into the post-privatisation phase while providing a framework for energy transition amongst others.

Consumer Protection in Nigeria’s Fintech Industry

Consumer protection refers to measures taken to safeguard the interests of buyers and customers against harmful, degrading, and/or harsh market practices. It also refers to measures that enable consumers make well-informed decisions about their choices and have access to effective redress mechanisms. 

CBN Issues Circular on Harmonised Reporting Requirements for Banks’ Foreign Currency Exposures

The Central Bank of Nigeria (the CBN) recently issued a circular titled the “Harmonisation of Reporting Requirements on Foreign Currency Exposures of Banks” (the Circular), which it stated is aimed at managing risks and preventing potential losses that could pose significant challenges to the Nigerian financial system. The Circular comes as the CBN expressed its concerns over the escalating foreign currency exposures of banks, particularly through their Net Open Position (NOP) and their involvement in foreign currency speculations that involve purchasing or holding foreign currencies with the expectation of profiting from exchange rate fluctuations.

Revised Levies and Sanctions for Non-Compliance Under Nigeria’s Financial Reporting (Amendment) Act, 2023

The Financial Reporting Council of Nigeria (Amendment) Act 2023 (the Amendment Act) made several changes to the Financial Reporting Council of Nigeria Act 2011. One of its amendments is a new Section 33 which provided that the Financial Reporting Council of Nigeria (FRC) must maintain a fund into which shall be paid all incomes accruing from annual levies/dues charged from every registered professional, not less than NGN 5,000 annually. The Amendment Act empowers the FRC to maintain a fund into which all monies accruing from annual dues, payable by registered professionals, registered firms, public interest entities (PIEs), other entities as prescribed by FRC and approved by the supervising minister, must be paid.