Insight type: Legal Alert

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released the revised Guidelines for International Money Transfer Services in Nigeria (the Guidelines) which effectively repealed the previous guidelines issued in 2014 (the 2014 Guidelines).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 The Electricity Act repealed the Electric Power Sector Reform Act, 2005 and enacted policies towards propelling the NESI into the post-privatisation phase while providing a framework for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.

Directive to Disconnect Switching Companies, PSSPs, and SAs from NIP Outwards System

On 5 December 2023, the Nigerian Inter-Bank Settlement System (NIBSS) issued a notice directing all deposit money banks, merchant banks, payment service banks, microfinance banks, mortgage banks, and mobile money operators (MMOs) to delist non-deposit-taking financial institutions (NDFIs) such as switching and processing companies, Payment Solution Service Providers (PSSPs), and Super Agents (SAs) as beneficiary institutions on their respective NIP funds transfer channels.

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Should you have any questions regarding this alert, do not hesitate to contact Ajibola Asolo.

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Contributors
1. Tomilola Tobun – Senior Associate
2. Aaron Alasa – Associate
3. Glory Akani – Associate

When Yes means No – A Look at Kenya’s evolving Data Protection Framework

Privacy is a fundamental human right and is central to the protection of human dignity. In its simplest form, the right to privacy allows each human being to be left alone in a core that is inviolable. As we continue to celebrate Data Privacy Day, we look at key takeaways from recent decisions issued by the Office of the Data Protection Commissioner (ODPC) as data protection jurisprudence continues to evolve in Kenya.