Regulatory Alerts2026-06-11 | FPR/DIR/PUB/CIR/001/016Draft Guidelines on Ring-Fencing Operations of Closely Linked Entities in the Nigerian Financial System
The Central Bank of Nigeria issued draft guidelines requiring closely linked financial entities to maintain strict operational, legal, and financial independence to mitigate contagion risks and regulatory arbitrage. The framework mandates the segregation of customer funds and data, independent governance structures, and the establishment of non-operating holding companies to ensure each entity can function on a standalone basis. Additionally, the document prescribes rigorous recovery and resolution planning, consolidated supervision, and enhanced consumer protection measures to preserve financial stability.
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