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.
HGL Real Estate Limited, a company with no significant digital presence, linked to billionaire tycoon Oba Otudeko, has acquired a 14.1 per cent stake in Lagos-listed hospitality provider Ikeja Hotel.
Ikeja Hotel “received notification from HGL Real Estate Limited, an affiliate of Honeywell Group Limited, that it has acquired 305,323,525 units of Ikeja Hotel Plc’s shares,” according to a regulatory filing on Thursday.
Based on Thursday’s closing share price, the firm’s holding in Ikeja Hotel is valued at over N13.2 billion.
The share purchase places HGL Real Estate among the top seven shareholders of the company, second only to Oma Investments Limited, which occupies the pinnacle of the pecking order with a 25.8 per cent interest.
HGL Real Estate does not own or run a known website, which is odd for a company financially enabled to own shares worth several billion naira in another firm.
Even on the Honeywell Group Limited (HGL)’s website, HGL Real Estate is not mentioned anywhere among the subsidiaries, including among the group’s real estate subsidiaries, which comprise Anchorage Leisures Limited and Uraga Real Estate.
PREMIUM TIMES’ checks with the Corporate Affairs Commission, as well as the commission’s beneficial ownership register, did not return any information related to the company.
In May 2023, Honeywell Group announced the appointment of Kemi Adeoye, its chief financial officer, to the board of Ikeja Hotel as a non-executive director.
“As a member of the board, Mrs Adeoye will play a crucial role in representing HGL’s interest in the company and ensuring continued value creation for stakeholders,” Honeywell Group said at the time.
“HGL’s investment in Ikeja Hotel Plc is in line with its mission to create, build, and invest in great businesses that create enduring value and improve lives,” it added.
In 2022, Honeywell Group consummated a deal to sell its 71.7 per cent shareholding in Honeywell Flour Mills to Nigeria’s largest flour-maker, Flour Mills.
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The enterprise value of the transaction was N80 billion.
Mr Otudeko served as the chairman of FBN Holdings (now First HoldCo) from 2012 until 2021, when he was ousted during a board shake-up by the Central Bank of Nigeria for his role in what the regulator described as a breach of corporate governance.
Insurance Meets Tech (IMT) has unveiled its inaugural “10 To Watch Insurance Innovators” ranking, recognising Nigerian insurance companies leading the industry’s digital transformation through technology-driven innovation and improved customer access.
The ranking, developed by Creato Urban, assessed insurers using two equally weighted criteria: digital transformation depth, which measures the sophistication of technology infrastructure and automation, and market impact, which evaluates how digital innovations improve accessibility and reach for policyholders.
Heirs Insurance Group emerged as the overall leader with a combined score of 89/100, earning praise for its digital insurance experience centre, AI-powered customer services, automated claims processing, and expansion of insurance access to more than three million Nigerians since 2021.
Leadway Assurance ranked second with 85/100, recognised for its enterprise-wide digital transformation strategy, AI-powered claims verification, and innovative products such as pay-as-you-go motor insurance. SanlamAllianz Nigeria placed third with 84/100, driven by its nationwide digital agent platform and same-day USSD-enabled claims service.
The remaining companies in the top 10 are Cornerstone Insurance Plc, CubeCover, Sovereign Trust Insurance Plc, Rex Insurance Limited, Enterprise Life Assurance Company Nigeria, Noor Takaful, and Zenith General Insurance Company Limited.
IMT also presented its inaugural “Most Promising Innovation Yet” recognition to emPLE for its cloud-based Data Lake platform, which aims to unify customer data across insurance operations and enable AI-powered underwriting, fraud detection, and embedded insurance services once deployed.
Speaking on the rankings, IMT Convener and Creato Urban Founder/CEO Odion Aleobua said the recognition reflects the Nigerian insurance industry’s gradual shift towards full digitalisation in line with regulatory expectations.
“This list indicates that the transformation of the Nigerian insurance industry is incrementally aligning with the growing demand for complete digitalisation of insurance services as required by NAICOM. The companies featured are taking the initiative rather than waiting for the industry to evolve,” Aleobua said.
The “10 To Watch” framework was developed by IMT’s editorial and advisory team to recognise insurers advancing technology adoption while expanding access to insurance across Nigeria. The announcement comes ahead of the fifth edition of Insurance Meets Tech, scheduled for September 18, 2026, at the Balmoral Convention Centre, Sheraton Hotel, Ikeja, Lagos.
The post Insurance Meets Tech Unveils Nigeria’s Top 10 Digital Insurance Innovators appeared first on Business Today NG.
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