- in Nigeria
- with readers working within the Banking & Credit and Retail & Leisure industries
- within Corporate/Commercial Law, Insurance and Real Estate and Construction topic(s)
Dear Esteemed Client,
The Securities and Exchange Commission (‘SEC’), the National Pension Commission (‘PenCom’), the Nigeria Revenue Service (‘NRS’), the Financial Reporting Council of Nigeria (‘FRCN’), the Nigeria Immigration Service (‘NRS’), the Nigerian Exchange Group (‘NGX’), the Central Bank of Nigeria (‘CBN’) the National Insurance Commission (‘NAICOM’), the Nigeria Deposit Insurance Corporation (‘NDIC’), the Nigeria Data Protection Commission (‘NDPC’), the Federal Competition and Consumer Protection Commission (‘FCCPC’), the Corporate Affairs Commission (‘CAC’), the National Agency for Food and Drug Administration and Control (‘NAFDAC’), and the Federal Government of Nigeria (‘FGN’) issued a series of Press Releases, Circulars, Directives and Guidelines in July 2026 containing information and directives for various sectors and the general public. We hope that you find the information useful in your operations.
CBN ISSUES INTERPRETATIVE GUIDANCE ON BOFIA CONTRACT SUSPENSION POWERS
On 1st July, 2026, the CBN issued interpretative guidance addressing Sections 34(2)(b) and 40(2) of the Banks and Other Financial Institutions Act 2020 (‘BOFIA’), which provides for its power to suspend payment or delivery obligations and termination rights in relation to failing banks or financial institutions. The guidance clarifies that such suspension shall not exceed two business days from the date on which the written order or notice of suspension is issued by the CBN Governor.
The interpretative guidance was issued pursuant to Section 56 of BOFIA and Section 33(1)(b) of the CBN Act 2007, and is intended to eliminate uncertainty for counterparties to contracts involving a failing or resolved bank.
For more information, please refer here.
CBN REVOKES OPERATING LICENCES OF 46 MICROFINANCE BANKS
On 1st July 2026, the CBN revoked the operating licences of 46 Microfinance Banks across the country, pursuant to its powers under Sections 12 and 13 of the Banks and Other Financial Institutions Act 2020. The revocation followed the affected banks’ failure to meet regulatory requirements for continued operation, including insufficient assets to meet liabilities, closure of operations without CBN approval, prolonged inactivity, failure to commence operations within 12 months of licensing, and failure to maintain the prescribed minimum capital.
For more information, please refer here.
SEC CLEARS SEVEN NEW FINTECH FIRMS FOR ADMISSION INTO THE ACCELERATED REGULATORY INCUBATION PROGRAMME (‘ARIP’)
On 2nd July 2026, the SEC admitted seven new entities into its Accelerated Regulatory Incubation Programme (‘ARIP’). The admitted entities are Bitbarter Technologies Limited, Luno Fintech Nigeria Limited, GetEquity Limited, Koinkoin Global Network Limited, Wrapped CBDC Ltd, Trovotech Ltd, and Blockvault Custodian Ltd. The SEC granted each entity an Approval-in-Principle to operate within the ARIP’s defined scope. ARIP is a regulatory sandbox designed to fast-track the onboarding of digital asset and other innovative investment service providers while SEC assesses novel business models and safeguards investor protection.
SEC clarified that an Approval-in-Principle is conditional and not a final licence, and it remains subject to the entities’ continued compliance with applicable regulatory, operational and supervisory obligations.
For more information, please refer here.
SEC RELEASED PROPOSED RULES ON CROSS-BORDER SECURITIES TRADING AND CUSTODY
On 2nd July 2026, the SEC published the draft rules on cross-border securities trading and custody, for public comment. The draft rules set out proposed requirements for trading in foreign securities and related custody arrangements by Nigerian capital market operators. It provides, among other things, that they shall apply to every broker registered with SEC that provides Nigerian investors access to securities listed or traded on a foreign securities exchange, and sets out registration requirements, eligibility criteria for executing foreign securities transactions through a foreign broker, and requirements for the custody of foreign securities.
The comments on the proposed rules are to be forwarded to the SEC’s Rules Committee’s Secretariat via rulescommittee@sec.gov.ng, or through the SEC’s Director-General, within two weeks of the date of exposure.
For more information, please refer here.
PENCOM EXTENDS REGULATORY FORBEARANCE ON PENSION FUND ADMINISTRATORS INVESTMENTS IN SECURITIES OF PENSION FUND CUSTODIANS’ PARENT COMPANIES
On 3rd July 2026, the PenCom extended its existing regulatory forbearance permitting Pension Fund Administrators (‘PFAs’) to invest in a broader range of securities issued by the parent companies (i.e. shareholders) of their respective Pension Fund Custodians (‘PFCs’), for a further 24 months, because of prevailing market realities, including operational constraints within the financial system and the limited availability of quality investable instruments in the domestic market.
The forbearance is subject to strict governing principles including arm’s-length dealing, prudential exposure caps (e.g., a 3%/1% per-issuer limit on ordinary shares depending on fund type, and a 5% aggregate cap on RSA Fund exposure to a PFC parent’s securities and bonds), enhanced internal governance review by the PFA’s Investment Committee, Risk Management and Compliance units, and mandatory quarterly disclosure to PenCom.
For more information, please refer here.
PENCOM INTRODUCES "I AM ALIVE" VERIFICATION EXERCISE FOR PENSION RETIREES
On 3rd July 2026, PenCom issued a circular on the Liveness Verification Exercise (Circular), introducing a mandatory annual “I Am Alive” verification process for all retirees receiving periodic pension benefits under the Contributory Pension Scheme, to confirm retirees’ living status, update records, and prevent payment leakages from deceased or ineligible beneficiaries. The Pension Fund Administrators (‘PFAs’) must offer both digital (mobile/web) and physical verification options, with special provisions for sick or elderly retirees.
Retirees who fail to verify within a 12-month cycle (plus a 3-month grace period) will have their pension and health insurance benefits temporarily suspended until verification is completed. The Circular takes effect from 1st December 2026.
For more information, please refer here.
PENCOM MANDATES DIGITALISATION OF CLIENT REGISTRATION/ONBOARDING AND BENEFITS PAYMENT PROCESSES
On 3rd July 2026, PenCom issued a circular directing all PFAs to adopt digital onboarding registration and electronic benefits payment processes for contributors and retirees, using secure web portals, mobile apps, USSD and other approved digital channels. PFAs must implement robust identity verification (PIN/NIN-based authentication, OTP, biometrics or facial recognition) commensurate with transaction risk. The circular also imposes cybersecurity, data protection and tamper-evident audit trail requirements on all digital platforms, and takes effect from 1st January 2027.
For more information, please refer here.
THE FEDERAL GOVERNMENT DIRECTS FCCPC TO INVESTIGATE BIG TECHS
On 6th July 2026, President Bola Ahmed Tinubu directed the FCCPC to investigate Meta, Alphabet, X and Generative AI platforms over allegations of anti-competitive practices. The directive followed a joint petition to the Presidency by the Nigerian Press Organisation comprising the Newspaper Proprietors’ Association of Nigeria (‘NPAN’), the Nigeria Union of Journalists (‘NUJ’), the Nigerian Guild of Editors (‘NGE’), the Broadcasting Organisations of Nigeria (‘BON’), and the Guild of Corporate Online Publishers (‘GOCOP’).
The issues under investigation include the companies’ market dominance, unauthorised scraping and use of news content to train AI models, and the absence of equitable commercial arrangements with Nigerian news publishers.
For more information, please refer here.
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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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