June 12, 2026
By Elizabeth Adegbesan
The Central Bank of Nigeria, CBN, has banned closely linked financial entities from extending loans or guaranteeing the obligations of one another without the bank’s prior approval.
The apex bank disclosed this, yesterday, in its Exposure Draft on ring-fencing operations of closely linked entities in the Nigerian financial system.
The apex bank stated: “Except with the prior written approval of the CBN, no closely linked entity shall extend a loan to, or guarantee the obligations of another.”
