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Friday 24 September 2021
HomeAfricaNigeria's apex bank to abolish universal banking

Nigeria’s apex bank to abolish universal banking

 The Central Bank of Nigeria (CBN) has said it will soon stop the issuance of universal banking licences to operators in the nation’s banking industry, as part of the ongoing reforms in the sector.

The apex bank’s director, banking operations, Samuel Oni, announced the decision at the end of a Bankers’ Committee meeting in Abuja, the nation’s capital, Monday.

Under the new system, operators would be expected to apply for and get separate licences for each model of banking operations, including commercial banking, micro-finance banking, mortgage banking and investment banking.

“This is part of the ongoing reforms to redraw the banking structure to ensure that commercial banks face their traditional business and ensure that depositors’ funds are not endangered. The new arrangement would protect commer cial bank activities from pressures from non-commercial banking operations, to allow them concentrate in the provision of their traditional bank ing activities.”

The universal banking licence scheme was introduced by the apex bank in 1999, with banks allowed to operate in all sectors.

Oni did not say exactly when the new system will take off, merely noting it would be within the next few months.

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