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CBN to revise rules governing financial holding companies

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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.

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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.


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CBN issues regulations for non-security virtual assets, effective November 5,

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BY NKECHI NAECHE-ESEZOBOR—The apex regulator, the Central Bank of Nigeria (CBN) on Friday  issued regulations for the Operations of Non-Security Virtual Assets in Nigeria, setting out a framework for licensing, regulating and supervising stablecoins, virtual asset service providers and related activities.

According to a circular to virtual asset service providers and stakeholders in the financial services industry, the apex bank said the regulations are meant to promote responsible innovation, strengthen the integrity of the Nigerian financial system and provide an appropriate framework for emerging digital payment instruments.

The CBN said the regulations are issued under the CBN Act, 2007, the Banks and Other Financial Institutions Act, 2020, and other applicable laws. It described them as a comprehensive, risk-based framework covering the licensing, authorisation, regulation, supervision and oversight of non-security virtual assets in Nigeria.

The framework covers stablecoins, Deposit Money Tokens, virtual asset service providers, virtual asset payment services, platform-facilitated peer-to-peer services, and custody, transfer, remittance, clearing and settlement activities.

The regulations also set requirements on the classification and designation of regulated tokens and activities, and on the licensing of issuers and providers of non-security virtual asset services. Other areas covered include capital, reserve-backing, liquidity and redemption; corporate governance, risk management and internal controls; and technology risk, cybersecurity and operational resilience.

They further address the safeguarding of reserve and customer assets; customer protection, disclosures and complaints management; and anti-money laundering, counter-terrorist financing and counter-proliferation financing obligations. Sanctions screening, transaction monitoring, blockchain analytics, Travel Rule compliance, counterparty due diligence, regulatory reporting, supervisory access, information sharing, enforcement, administrative sanctions and orderly wind-down arrangements are also included.

The CBN said the regulations apply to persons carrying out regulated activities in or from Nigeria, those directing such activities at persons in Nigeria, and those whose activities may materially affect the country’s payments system, financial system, foreign exchange market or financial stability. They may apply whether or not the person has a physical presence in Nigeria.

The apex bank said the regulations do not displace the statutory mandate of the Securities and Exchange Commission or any other competent authority. Activities involving security virtual assets, securities, investment contracts or other capital-market products remain subject to the capital-market regulatory framework. Where an activity involves both non-security virtual assets and matters under another authority’s mandate, approvals must be obtained from each competent authority.

All affected institutions, issuers, service providers, operators, promoters and other stakeholders are required to familiarise themselves with the regulations and comply fully with the applicable requirements.

The regulations take effect from November 5, 2026. The circular was issued by the CBN’s Payments System Policy Department.

The post CBN issues regulations for non-security virtual assets, effective November 5, appeared first on Business Today NG.

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TotalEnergies deploys deepwater rig to Akpo for fresh drilling in Nigeria

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Black Rhino arriving Nigeria ahead of Deepwater drilling of Akpo field. Credit TotalEnergies.jpg

French energy giant TotalEnergies has deployed an ultra-deepwater drillship to Nigeria’s Akpo oil and gas field, preparing to commence a new drilling campaign that could expand activity in one of the country’s major offshore petroleum assets.

The company announced on Thursday that the drillship, Noble Black Rhino, had arrived at the Akpo field ahead of the campaign, with drilling of a well designated AFE-1X scheduled to begin on 13 November.

According to a statement published on its Facebook page, the vessel crossed into Nigerian waters on 2 November after completing a 738-nautical-mile journey from Côte d’Ivoire. It arrived at the field at 6 a.m. on 3 November.

TotalEnergies said preparations were underway to achieve operational readiness for the scheduled commencement of drilling, describing the vessel’s arrival as a significant milestone for its deep offshore operations.

The development signals continued investment in Nigeria’s deepwater petroleum sector, where new drilling and field developments could strengthen production, generate additional government revenue and create opportunities for Nigerian businesses.

However, the company has not disclosed the expected production from the planned well, the estimated investment, the volume of additional reserves being targeted or the number of Nigerian workers and contractors expected to benefit from the campaign.

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What the drilling means for Nigeria

The Akpo field is located in Petroleum Mining Lease 2 (PML 2), formerly Oil Mining Lease 130 (OML 130), approximately 150 kilometres offshore Nigeria.

The field, which began production in March 2009, is operated by TotalEnergies Upstream Nigeria Limited, which holds a 24 per cent participating interest in the licence.

Other partners include China’s CNOOC, with 45 per cent; South Atlantic Petroleum Limited, with 15 per cent; and Prime 130, with 16 per cent. The Nigerian National Petroleum Company Limited is the concessionaire of the production-sharing contract.

The former OML 130 was converted into separate petroleum mining leases under the Petroleum Industry Act. Akpo became PML 2, while Egina and Preowei became PML 3 and PML 4, respectively.

The Nigerian Upstream Petroleum Regulatory Commission’s (NUPRC) concession records identify Akpo as the field associated with PML 2.

The Akpo field is a major producer of condensate and natural gas. Its development has contributed to Nigeria’s hydrocarbon production and gas supply, including supplies to the Nigeria Liquefied Natural Gas facilities.

In February 2024, TotalEnergies announced the commencement of production from Akpo West, a development connected to the existing Akpo floating production, storage and offloading facility through subsea infrastructure.

The development was expected to add 14,000 barrels of condensate daily, with gas production of up to four million cubic metres daily projected by 2028.

NNPC said the Akpo main field produced 124,000 barrels of oil equivalent daily in 2023.

A successful outcome from the new drilling campaign could support further development of the asset and strengthen Nigeria’s ability to sustain or increase offshore hydrocarbon production.

It could also generate additional royalties, taxes and other government receipts if the drilling results in commercially viable production.

However, the economic benefits will depend on the nature of the well, its results, development costs and whether any additional hydrocarbons can be commercially produced since a commencement of drilling alone does not guarantee new production.

Questions over offshore communities’ benefits

Beyond the potential contribution to national production, the campaign raises questions about how much economic value communities affected by the operations will derive from another phase of deepwater investment.

Although TotalEnergies says it has established five Host Communities Development Trusts for its Nigerian operations, publicly available records reviewed by PREMIUM TIMES do not show that the trusts cover the littoral communities assigned to its deepwater operations.

The company has identified five trusts covering its Nigerian petroleum operations: Obagi, Olo, BOPANE, NOPL and Port Harcourt. However, a review of the HostComply platform, which tracks the implementation of the Petroleum Industry Act’s host communities framework, and TotalEnergies’ publicly available corporate records and website did not reveal a separately identifiable trust or beneficiary-community list for its Akpo and Egina offshore operations.

This raises questions about whether the communities assigned to these deepwater assets have been formally recognised as beneficiaries of the statutory development arrangements and whether the company has fulfilled its funding obligations to them.

The Petroleum Industry Act, which came into force in August 2021, requires petroleum operators to establish Host Communities Development Trusts within 12 months of the Act’s commencement. It also requires each settlor, where applicable through the operator, to contribute three per cent of its actual annual operating expenditure in the preceding financial year to the applicable trust.

Although Akpo had commenced production in 2009, more than a decade before the Act was enacted, its existing production status did not exempt the operator from the new statutory host-community framework.

The regulator, NUPRC, had specifically identified communities along Nigeria’s coastline as beneficiaries of deepwater petroleum operations.

In a presentation delivered on 29 July 2022, the then Chief Executive of NUPRC, Gbenga Komolafe, outlined the regulator’s proposed allocation of littoral communities to deepwater operators for the implementation of the host communities regulations.

The presentation identified Rivers and Bayelsa states as the littoral states allocated to the Akpo/Egina deepwater operations.

The allocation suggests that communities in the two states were expected to be considered in determining the host-community development arrangements for the fields.

However, PREMIUM TIMES could not independently establish from publicly accessible records whether TotalEnergies has subsequently incorporated a trust specifically covering these communities, whether they have been integrated into any of its five existing trusts or how much has been contributed for their benefit.

A media enquiry to the company via mail seeking verification was not responded to as of the time this report was filed. The company needs to clarify which trusts cover the Akpo/Egina littoral communities, identify the beneficiary communities and disclose the contributions made from the operating expenditure of the deepwater assets.

The Petroleum Industry Act was designed to ensure that communities affected by petroleum operations receive direct and measurable social and economic benefits, rather than being excluded from development opportunities generated by the industry.

Environmental accountability remains important

The new drilling campaign is also taking place in a time of questions about TotalEnergies’ environmental performance in Nigeria, particularly its claims about ending routine gas flaring.

In a 12 October investigation, PREMIUM TIMES examined the company’s declaration that it had eliminated routine gas flaring in Nigeria.

The investigation documented continuing flare activity around its OML 58 and OML 130 assets, using satellite observations, regulatory data and accounts from residents of communities hosting its facilities.

Data from the Nigerian Oil Spill Detection and Response Agency’s Gas Flare Tracker showed that estimated flare volumes around OML 130 where the company is now undertaking fresh drilling rose to 7.9 million standard cubic feet in 2025, from levels below 6.2 million standard cubic feet in 2022 and 2023.

The investigation also found gaps in publicly accessible asset-level methane emissions information, raising questions about whether the company’s environmental claims could be verified.

Although the existence of flare activity does not by itself imply continued routine flaring, the findings highlighted the need for transparent emissions records and effective regulatory oversight.

The arrival of another drilling vessel places renewed importance on environmental monitoring, particularly the prevention of methane emissions, oil spills and other pollution associated with offshore exploration and production.

NUPRC is responsible for regulating upstream petroleum operations, while the National Oil Spill Detection and Response Agency oversees oil spill preparedness, detection and response.

For host communities and environmental advocates, the central issue is whether increased investment in offshore petroleum operations will be matched by stronger environmental safeguards and transparent disclosure of operational impacts, especially at a deep-water location where reach may be difficult for the regulator and communities.

Major investment in deepwater operations

The Noble Black Rhino is an ultra-deepwater drillship owned by Noble Corporation, an international offshore drilling contractor.

The vessel is designed to operate in water depths of up to 12,000 feet and drill wells to depths of approximately 40,000 feet.

In its third-quarter 2026 financial results published on 26 October, Noble disclosed that it had secured a four-well contract with TotalEnergies in Nigeria.

The contract was expected to commence in the fourth quarter of 2026 and run for approximately 150 days, with six additional priced option wells.

However, Noble’s disclosure did not identify the specific fields where all the wells would be drilled or provide a breakdown of the contract’s value.

TotalEnergies’ announcement about the arrival of the vessel identifies Akpo as the location of its immediate drilling campaign.

The company said the development reinforces its commitment to responsible energy development, operational safety, technological innovation and increased Nigerian participation in the oil and gas industry.

TotalEnergies has operated in Nigeria for more than six decades and remains one of the country’s major international oil and gas producers.


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