Regulatory Alerts2008-11-20 | TED-FEM-FPC-GEN-01-126-08Exclusivity Clauses in the Agreements Signed by Nigerian Banks with International Money Transfer Operators
The Central Bank of Nigeria has directed all deposit money banks to remove exclusivity clauses in agreements with international money transfer operators, as they constitute a restraint on competition and increase costs. Existing agreements will be reviewed to expunge such clauses immediately, and banks are required to inform their respective international partners to strictly comply.
09‐616 36418 BSD/DIR/CIR/GEN/VOL. 2/017 November 20, 2008 TO: ALL DEPOSIT MONEY BANKS EXCLUSIVITY CLAUSES IN THE AGREEMENTS SIGNED BY NIGERIAN BANKS WITH INTERNATIONAL MONEY TRANSFER OPERATORS The attention of the Central Bank of Nigeria has been drawn to the inclusion of exclusivity clauses in the agreements between International Money Transfer Operators and their agent banks in Nigeria. Such exclusivity clauses aimed at protecting the interest of the International Money Transfer Operators, constitute a restraint on competition and unnecessarily increase the cost of money transfer services to the users. In the light of the above, all deposit money banks are hereby notified that the Central Bank of Nigeria, henceforth, will no longer approve any money transfer agreements between International Money Transfer Operators and agent banks that contain exclusivity clauses. Consequently, the Central Bank of Nigeria directs all deposit money banks to ensure that exclusivity clauses are no longer included in agreements between them and International Money Transfer Operators and that all existing agreements are reviewed to expunge such clauses. These directives take immediate effect and all banks offering international money transfer services are required to bring this to the attention of their respective International Money Transfer partners, and ensure strict compliance.
D. A. N. EKE Ag. DIRECTOR OF BANKING SUPERVISION