Business
CBN to revise rules governing financial holding companies
The Central Bank of Nigeria (CBN) has proposed the revision of the regulatory framework governing financial holding companies to bolstering the resilience and stability of the country’s financial system.
The regulator disclosed the plan in a circular signed by Rita Sike, the director of its Financial Policy and Regulation Department, on Thursday, inviting stakeholders to send their reviews of the guidelines by 9 July.
“Following several years of implementation, the CBN has identified areas within the extant guidelines that require enhancement to strengthen the operational effectiveness and regulatory oversight of financial holding companies,” the statement noted.
CBN stated that it would further promote a safe, sound and resilient financial system with the guidelines.
It noted that the overhaul was necessary after years of implementing the existing framework introduced in 2014 to mitigate the risks arising from the conduct of non-core banking activities within banking groups.
The regulation review addresses gaps and aligns with evolving regulatory and market developments.
Revisions
Among the key revisions in the guidelines is the clarification and enhancement of minimum capital requirements for financial holding companies to ensure their capacity to serve as a reliable source of financial strength to their subsidiaries.
The revised guidelines also address identified gaps in shared services arrangements to prevent potential abuse or undue advantage over banking subsidiaries.
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According to the CBN, the revision takes into consideration the establishment of clear eligibility requirements for promoters seeking to set up financial holding companies.
The revised framework streamlines the structure of financial holding companies by permitting them, instead of their Nigerian banking subsidiaries, to directly own equity interests in foreign subsidiaries.
It also requires financial holding companies to maintain a minimum 51 per cent equity stake in each subsidiary and be registered as persons with significant control with the appropriate corporate registration authority.
An Aero Contractors flight travelling from Lagos to Abuja on Saturday morning returned to its departure airport after the crew reported a technical issue while the aircraft was airborne.
The aircraft, which departed Lagos at about 7:30 a.m., had travelled part of the route mid air before the flight crew decided to discontinue the journey and return to Lagos as a precautionary safety measure.
Passengers were safely evacuated after the aircraft landed, and no injuries were reported.
A passenger aboard the flight told PREMIUM TIMES that the cabin became unusually hot while the aircraft was in the air, causing anxiety among passengers.
According to the passenger, the crew informed those on board that the aircraft had developed a technical problem and would return to Lagos but did not disclose the exact nature of the fault.
“There was a lot of panic because people did not know exactly what had happened. We were only told there was a technical problem and that we had to return to Lagos,” the passenger said.
As of 10:10 a.m., the affected passengers had begun boarding another Aero Contractors aircraft to continue their journey to Abuja, according to one of the passengers who spoke with PREMIUM TIMES.
PREMIUM TIMES contacted Aero Contractors for comments on the incident, including the nature of the reported technical issue, the reason for the aircraft’s return to Lagos and the arrangements made for affected passengers.
However, the airline had yet to respond as of the time this report was filed.
Recent incidents
Saturday’s occurrence comes about two months after a Max Air flight from Abuja to Katsina made an emergency return to the Nnamdi Azikiwe International Airport shortly after take-off following a reported technical fault.
As previously reported by PREMIUM TIMES, passengers on the May 2026 flight recounted hearing loud banging sounds from the aircraft before it reportedly lost altitude briefly and struggled to stabilise, prompting the pilot to return to Abuja as a safety precaution. The aircraft landed safely, and no injuries were reported.
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The Aero Contractors incident also comes amid increased public attention to airline operations following Thursday’s runway excursion involving an Enugu Air Embraer E170 at Benin Airport.
Although all 63 passengers and five crew members escaped unhurt, the occurrence disrupted flight operations after the runway was temporarily closed, forcing Air Peace and United Nigeria Airlines to suspend flights to and from Benin while aircraft recovery and safety assessments were carried out.
While the circumstances surrounding the Aero Contractors, Max Air and Enugu Air incidents differ, they have renewed attention on operational reliability and safety across Nigeria’s aviation sector.
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