Banking
CBN to Resume LDR Policy, Unfreezes Accounts of AbokiFX, Others
By Adedapo Adesanya
The Central Bank of Nigeria (CBN) ordered banks to vacate a Post-No-Debit (PND) restriction earlier imposed on the bank accounts of 440 individuals and companies.
The central bank has also informed commercial banks in the country that it would resume the enforcement of the Loan-to-Deposit Ratio (LDR) policy effective July 31, 2023.
A PND is one instrument through which the CBN gives powers to stop customers from operating their bank accounts with the permission of the courts.
The central bank conveyed the vacation of restriction in a circular dated July 25, 2023, which was signed by Mr A.M. Barau on behalf of the CBN Director, Banking Supervision Department, and addressed to all banks.
The correspondence read, “You are hereby directed to vacate the Post-No-Debit restriction placed on the accounts of the under-listed bank customers at our instance.”
The apex bank further mandated the banks to inform the concerned customers of the vacation accordingly.
Some of the affected accounts included Fortune-K Resources and Investment Nigeria Limited, Voomos Limited, BoxII Limited, OP Amber, KIIPay Limited, Blake Excellence Resort, and Vanu Nigeria Limited.
Others are Bakori Mega Services, Ashambrakh General Enterprise, Namuduka Ventures Limited, Crosslinks Capital and Investment Limited, IGP Global Synergy Limited, Davedan Mille Investment Limited and Urban Laundry, Advanced Multi-Links Services Limited, Spray Resources, Al-Ishaq Global Resources Limited, Himark Intertrades, Charblecom Concept Limited, Wudatage Global Resources, Whales Oil and Gas, Mosinox Oil and Gas and A.A. Gwad Ventures.
Those also listed included Treynor Soft Ventures, Fyrstrym Global Concepts Limited, Samarize Global Nigeria Limited, Zahraddeen Haruna Shahru, FirmCoin Resources and SIBT Acuracy, and CrossLinks Energy Limited, among others.
On the LDR policy, the apex bank said the move followed the January 7, 2020, directive, which required banks to maintain a minimum LDR of 65 per cent.
The CBN, in a letter addressed to the banks and signed by Mr Abu Shebe, on behalf of the CBN Director of Banking Supervision, further explained that the resumption of enforcement was in line with the objective of the policy and the need to moderate industry excess liquidity.
Consequently, the CBN warned that Deposit Money Banks (DMBs) with LDR below the minimum requirement as of the date and monthly thereafter would be liable to a Cash Reserve Requirement (CRR) surcharge of up to 50 per cent of the lending shortfall implied by the target LDR.
The bank added that the DMBs would be duly notified of their respective LDR position and basis of surcharges, if any.
On July on July 3, 2019, the central bank, in an effort to stimulate the economy, mandated banks to keep a minimum LDR – defined as a loan-to-funding ratio – of 60.0 per cent, which was later reviewed upward to 65.0 per cent on September 30, 2019, to encourage banks to increase consumer, mortgage, and corporate credits thereby stimulating aggregate demand, output growth, and employment.
The LDR is the total value of loan facilities issued divided by the aggregate value of deposits mobilized and has both liquidity and solvency implications in the short-medium and medium to long-term horizons.
According to the CBN, this underscores the need to measure the impact of LDR on banks’ liquidity to ensure the achievement of the mandate of the bank – to promote a sound financial system in the country – without compromising the health of domestic banks.
The justification for the LDR policy was also to encourage banks to enhance credit delivery to the real sector of the economy.
The apex bank, in the January 2020 letter to all banks, stated that it noticed a remarkable increase in the size of gross credit by the DMBs to customers.
Accordingly, the apex bank decided to retain the minimum 65 per cent LDR in the interim and directed the banks to maintain the level.
The CBN noted that the incentive, which assigned a weight of 150 per cent with respect to lending to SMEs, retail, mortgage, and consumer lending, will continue to apply, while failure to achieve the target shall continue to attract a levy of additional CRR of 50 per cent of the lending shortfall of the target LDR on or before March 30, 2020.
The banks were further advised to maintain strong risk management practices regarding their lending operations.
By Aduragbemi Omiyale
Sterling Financial Holdings Company Plc has allotted shares from its public offer of 2025 to investors with valid applications.
The allotment follows the earlier receipt of final approval from the Central Bank of Nigeria (CBN) and the recent clearance by the Securities and Exchange Commission (SEC).
In September 2025, the financial institution offered for sale about 12,581,000,000 ordinary shares of 50 kobo each at N7.00 per share in public offer.
However, the exercise received wide participation from the investing public, with the company getting 18,280 applications for 16,839,524,401 ordinary shares valued at approximately N117.88 billion.
Following a thorough verification process, valid applications were received from 18,276 shareholders for a total of 13,812,239,000 ordinary shares, representing a subscription level of 109.79 per cent and reflecting sustained confidence in Sterling Holdco’s strategic direction, governance, and long-term growth prospects.
The firm approached the capital market for additional funds for the recapitalisation of its two flagship subsidiaries, Sterling Bank and The Alternative Bank.
The capital injection will support the commencement of full operations and contribute to the group’s revenue diversification objectives.
In line with the guidelines set out in the offer prospectus, Sterling Holdco confirmed that all valid applications will be allotted in full. Every investor who complied with the terms of the offer will receive all the shares for which they applied.
A very small number of applications were not processed or were partially rejected due to non-compliance with the offer terms, including duplicate payments and failure to meet the minimum subscription requirement of 1,000 units or its multiples, as stipulated in the offer documents.
The group ensures a seamless post-offer process, with refunds for excess or rejected applications, along with applicable interest, to be remitted via Real Time Gross Settlement or NIBSS Electronic Funds Transfer directly to the bank accounts detailed in the application forms.
Simultaneously, the electronic allotment of shares has be credited to successful shareholders’ accounts with the Central Securities Clearing System (CSCS) on February 17, and for applicants who do not currently have CSCS accounts, their allotted shares will be temporarily held in a registrar-managed pool account pending the submission of their completed account opening documentation to Pace Registrars Limited, after which the shares will be transferred to their personal CSCS accounts.
By Modupe Gbadeyanka
To drive inclusive growth, strengthen financial stability, and deepen global financial integration across developing economies, there must be coordinated reforms in digital cross-border payments.
This was the submission of the Governor of the Central Bank of Nigeria (CBN), Mr Olayemi Cardoso, at the G‑24 Technical Group Meetings in Abuja on Thursday, February 19, 2026.
According to him, high remittance costs, settlement delays, fragmented systems, and heavy compliance burdens still limit the participation of households and Micro, Small and Medium Enterprises (MSMEs) in global trade.
The central banker emphasised that efficient payment systems are essential for economic inclusion, highlighting that global remittance corridors still incur average costs above 6 per cent, with settlement delays of several days, excluding millions from modern economic activity.
Mr Cardoso cautioned that while digital payments present significant opportunities, they also carry risks such as currency substitution, weakened monetary transmission, increased FX volatility, capital-flow pressures, and regulatory fragmentation.
The G-24 TGM 2026, themed Mobilising finance for sustainable, inclusive, and job-rich transformation, convened global financial stakeholders to advance the modernisation of finance in support of emerging and developing economies.
The CBN chief reaffirmed Nigeria’s commitment to working with G-24 members, the IMF, the World Bank Group, and other partners to build a more inclusive, resilient, and development-oriented global financial architecture.
“We have strengthened our AML/CFT frameworks in line with FATF guidelines, requiring strict dual-screening of cross-border transactions to mitigate risks.
“To deepen regional integration, the CBN introduced simplified KYC/AML requirements for low-value cross-border transactions to encourage broader participation in PAPSS, easing processes for Nigerian SMEs and enabling faster intra-African trade payments.
“We have also embraced fintech innovation through our Regulatory Sandbox, allowing payment-focused fintechs to test secure, instant cross-border solutions under close CBN supervision,” he disclosed.
By Modupe Gbadeyanka
The merger and business combination between Unity Bank Plc and Providus Bank Limited remains firmly on course, a statement from one of the parties disclosed.
According to Unity Bank, there is no iota of truth in reports in certain sections of the media suggesting that the merger process had stalled, as the transaction remains firmly on track.
It was disclosed that the necessary regulatory steps have been completed, but only a few other steps to finalise the transaction, especially the final court sanction.
There had been speculations that both lenders may not meet the new minimum capital requirement of the Central Bank of Nigeria (CBN) before the March 31, 2026, deadline.
However, it was noted that the combined capital base of Unity Bank and Providus Bank exceeds N200 billion, which is the minimum requirement to retain a national banking licence under the CBN’s recapitalisation framework.
When completed, the Unity-Providus merger is expected to deliver a stronger, more competitive, and customer-centric financial institution — one with the scale, innovation, and reach to redefine the retail and SME banking landscape in Nigeria.
“The merger with Providus Bank significantly enhances our capital base, operational capacity, and strategic positioning.
“We are confident that the combined institution will be better equipped to support economic growth and deliver innovative financial solutions across Nigeria,” the chief executive of Unity Bank, Mr Ebenezer Kolawole, stated.
Recall that a few months ago, shareholders authorised the merger between the two entities at Court-Ordered Meetings. They also adopted the scheme of merger at their respective Extraordinary General Meetings (EGMs) in September 2025,
The central bank also backed the merger, with a pivotal financial accommodation to support the transaction. The merger also received a further boost with a “no objection” nod from the Securities and Exchange Commission (SEC).
The regulatory approvals form part of broader efforts to strengthen the resilience of Nigeria’s banking system, reinforce capital adequacy across the sector, and mitigate potential systemic risks.
The development positions the combined entity among the 21 banks that have satisfied the apex bank’s new capital threshold for national banking operations.
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