The regulatory guide signed by the Director of the Financial Policy and Regulation Department, Chibuzo Efobi, also applies to merchant, non-interest, and payment service banks approaching the CBN for a change of the line of business.
The applicants are also prohibited from taking any new business decision after the conversion process has commenced “except in line with the bank’s conversion strategy submitted to the CBN”. In its requirement, the bank stated: “Any bank or OFI seeking to change its licence type shall communicate its desire in writing to the Director of its current supervisory department. The application shall be accompanied by a business plan duly approved by the financial institution’s shareholders at an Annual General Meeting or Extra Ordinary General Meeting and the Board of Directors. It shall contain detailed processes, procedures, timelines and milestones regarding the proposed change.