Introduction

On 3rd May 2023, the Central Bank of Nigeria (‘’CBN’’) issued a guideline on representative offices of foreign banks in Nigeria. The guideline seeks to regulate the operation of representative offices of foreign banks in Nigeria by clearly setting out the pre and post-requirements for the smooth operation of these representative offices in Nigeria.

The guideline defines an Approved Representative Office to mean an Approved Representative Office of a Foreign Bank in Nigeria is a liaison office of a foreign bank licensed by the Central Bank of Nigeria, whose sole object is to market the products and services of its foreign parent as well as serve as the liaison between its foreign parent and local banks, an affiliate of the foreign parent, other financial institutions, private companies and the general public.

Scope of Guideline

The scope and the applicability of the guideline are limited to the following financial institutions:

• A bank licensed under any foreign law and registered head office outside Nigeria.
• Any financial institution licensed under foreign law whose primary business includes receiving deposits, granting loans, and providing current and savings accounts.
• Any foreign-owned operating bank/financial holding company that is foreign-based that owns a controlling interest in one or more banks or institutions whose primary business includes the receipt of deposits, granting of loans and provision of current and savings accounts.

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