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.

Nigeria’s crude oil production topped its Organisation of the Petroleum Exporting Countries (OPEC) quota in May, reaching its pinnacle in 15 months and cementing its position as Africa’s leading oil producer.

Data released by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) showed the country produced an average of 1.53 million barrels of crude oil per day (bpd) during the month.

With a condensate production of 170,446 bpd included, the commission put Nigeria’s average total hydrocarbon output at 1.7 million bpd.

“Nigeria’s oil production witnessed an upswing in May 2026, averaging 1,530,354 barrels of crude oil and 170,446 barrels of condensates per day, bringing the total combined production to 1,700, 800 barrels per day and consolidating Nigeria’s position as Africa’s largest oil producer,” NUPRC said in a statement on Thursday.

The figure represents 102 per cent of Nigeria’s OPEC production quota of 1.5 million bpd, according to the regulator.

The latest performance marks a significant milestone for the country’s oil sector, with total production standing at its peak since last July, when the combined crude oil and condensate output reached 1.71 million bpd.

With the figure for condensates excluded, the 1.53 million bpd in May represents Nigeria’s strongest performance since January 2025, when output touched 1.538 million bpd.

The May figure also represents a 15-month high for crude oil production, excluding condensates.

While Nigeria’s oil production continues to witness significant growth, oil rich communities from the country’s Niger Delta region are grappling with unprecedented levels of oil and gas pollution amidst renewed exploration targets.

Remediation efforts across the region have been conspicuously slow, raising concerns over the country’s refusal to prioritise the welfare of the residents of the region.

Production rises month-on-month

Crude oil production (excluding condensates) in May increased by 2.8 per cent from 1.48 million bpd a month earlier.

The trend has remained positive over the past five months. Combined crude oil and condensate production rose from 1.48 million bpd in February to 1.54 million bpd in March, 1.66 million bpd in April and 1.7 million bpd in May.

The steady rise suggests sustained improvements in operational efficiency across the upstream sector, despite the ongoing challenges facing the global oil market.

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Among Nigeria’s major production streams, Bonny Terminal recorded the highest output, contributing 293,870 bpd.

Forcados Terminal followed closely with 289,900 bpd, while Qua Iboe produced 173,360 bpd.

Escravos Oil Terminal accounted for 135,470 bpd, while Odudu (Amenam Blend) completed the top five production streams with 63,250 bpd.

Improved operations

The NUPRC attributed the improved production performance to stable operations across the industry.

According to the commission, there were no significant pipeline disruptions or facility outages during the period under review.

It also noted that all the previously scheduled turnaround maintenance programmes have been successfully completed, contributing to improved operational reliability and higher production efficiency.

The latest figures could boost government revenues and strengthen confidence in the ongoing efforts to raise Nigeria’s oil production capacity, which has been constrained in recent years by crude theft, pipeline vandalism and operational challenges.

With output now above its OPEC quota, attention will turn to whether the country can sustain the momentum in the coming months.