Fitch Ratings Alerts on CBN's Bank Holding Company Rules

Fitch Ratings has issued a warning regarding the Central Bank of Nigeria's (CBN) proposed Bank Holding Company (BHC) regulations, which could compel several Nigerian banks to restructure their ownership frameworks, particularly concerning foreign subsidiaries. The proposed regulations aim to strengthen corporate governance, manage risks more effectively, and clarify the separation between holding companies and their operating subsidiaries.

Currently, many Nigerian banking groups have domestic entities that directly own foreign subsidiaries, a structure that differs from most major African banking groups. Fitch's report indicates that the new framework may require banks to transfer ownership of offshore subsidiaries to financial holding companies or establish intermediate holding companies for ownership.

This restructuring is expected as Nigerian banks continue to expand across African markets, despite facing macroeconomic challenges and regulatory hurdles. As of the end of 2025, the five largest banks in Nigeria accounted for 52% of the domestic banking sector's assets.