2014-01-30 | OFI/DIR/CIR/GEN/01/107

Recognition of Investment Properties/Real Estate Development in the Financial Statement of Primary Mortgage Banks in Nigeria

The Nigerian Central Bank's (CBN) October 11, 2013 circular letter addressed all Primary Mortgage Banks (PMBs) in the country. It reminded PMBs of Section 1.2 and 1.3 in the Guidelines for PMBs which prohibits Real Estate Development as a non-permissible activity. Consequently, CBN instructed PMBs to commence disposing off all their real estate developments at arm's length, classifying these as Non-Current Assets Held for Sale and recognizing them according to IFRS 5. This was a directive based on the Central Bank of Nigeria's commitment to maintaining financial stability and prudential practices in the country.

Nigeria

Central Bank of Nigeria

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