CBN approves operation of subsidiaries, SPV by DFIs

The Central Bank of Nigeria (CBN) on Tuesday approved the establishment and operation of subsidiaries and Special Purpose Vehicles (SPVs) by Development Finance Institutions (DFIs).

The move is in furtherance of operational objectives of the sub-sector.

In a circular/letter to all DFIs signed by Tokunbo Martins, director, Other Financial Institutions Supervision Department (OFISD), the CBN said it is important that DFIs are transparent in their financial reporting and remain focused on their core objectives.

Part of the circular reads: “In this regard, DFIs are henceforth required to provide comprehensive disclosures on all subsidiaries and SPV operations. In the same vein the same regulatory standards that apply to the parent DFI will apply to the subsidiaries and/or SPV”.

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Consequently, the DFIs are required to submit returns on all SPVs including details of ownership, corporate governance structure, statements of assets and liabilities, income and expenditures, project(s) status possible risk exposure and mitigants along with own regulatory returns.

They are also report on the financial soundness indicators/prudential ratios of the DFI calculated on a solo and consolidated basis, present for approval, its audited accounts along with that of the SPVs on a consolidated basis, and meet a consolidated leverage ratio of at least 10 percent Common Equity: Total Assets(On and Off-Balance Sheet Inclusive).

HOPE MOSES-ASHIKE

Hope Moses-Ashike

Hope Moses-Ashike is an Associate Editor, Banking and Finance, with more than a decade of experience reporting on Nigeria’s financial system and broader economy. She closely tracks market movements, monetary policy decisions, company disclosures, regulatory actions, economic indicators, and global developments, and interprets what they mean for businesses, investors, policymakers, and households. Her reporting helps readers understand complex issues such as inflation trends, foreign exchange market dynamics, interest rate decisions, bank performance, and investment risks. She also covers major international events and periodically travels to Washington, D.C., to report on the World Bank/IMF Spring and Annual Meetings. Her dedication to financial journalism has earned her multiple recognitions and invitations to high-level professional development programmes. She is an alumna of the International Visitors Leadership Programme (IVLP) in the United States and holds an Advanced Financial Journalism Certificate from the Press Association Training in London, UK. Her other notable achievements include completing the Lagos Business School CMC Programme, the Bloomberg Media Africa Initiative Programme, and a Master Class in Journalism at Rhodes University in South Africa.