The Central Bank of Nigeria (CBN) has moved to tighten enforcement of its rule limiting banks’ investments in offshore subsidiaries and ventures to 10 per cent of shareholders’ funds, warning that excessive exposure to foreign operations could threaten the stability of Nigerian lenders.

Director, Banking Supervision Department, CBN, Dr Olubukola Akinwunmi, disclosed this yesterday at the 38th Seminar for Finance Correspondents and Business Editors in Abuja.

He said the restriction was designed to prevent offshore investments from creating risks that could spill over into Nigerian banks.

Akinwunmi said the apex bank would enforce the existing regulatory limit more strictly, particularly as banks with stronger balance sheets following the recapitalisation exercise seek to expand their international operations.

“We cannot afford to have reckless investments in offshore subsidiaries that could negatively impact our banks. The Central Bank is enforcing the rules and laws more strictly to ensure continued confidence in the banking system,” he said.

The development comes amid increased international expansion by Nigerian banking groups, several of which have established or acquired subsidiaries across African markets and other jurisdictions.

The CBN’s position means that stronger capital positions arising from the recently completed recapitalisation will not automatically translate into unlimited expansion of banks’ offshore operations.

Under the regulatory framework, investments in foreign banking subsidiaries are subject to a 10 per cent ceiling relative to shareholders’ funds. The rule is intended to limit the amount of capital Nigerian banks can commit to overseas operations and contain concentration and cross-border risks.

The enforcement could have implications for banks whose international operations have expanded rapidly in recent years.

Access Holdings, for instance, disclosed earlier this year that it would reduce equity stakes in some foreign subsidiaries to comply with the CBN requirement. The group said it had 12 months to bring its foreign investments within the regulatory limit.

The issue is particularly significant because the CBN is simultaneously seeking to strengthen the resilience of Nigerian banking groups following the recapitalisation programme, under which 33 banks raised a combined N4.65 trillion to meet revised minimum capital requirements.

Akinwunmi said stronger capital must be accompanied by disciplined investment decisions and effective risk management.

He warned that excessive exposure to offshore subsidiaries could transmit risks from foreign operations to Nigerian parent institutions, potentially weakening the capital buffers the recapitalisation was designed to strengthen.

The CBN’s approach also forms part of its broader effort to strengthen supervision of financial groups and holding-company structures.

In June 2026, the apex bank released an exposure draft proposing revised guidelines for financial holding companies, covering areas including ownership, capital and governance.

Akinwunmi said the CBN’s scrutiny would extend beyond capital adequacy to governance, asset quality, liquidity and risk exposures.

He said poor governance, weak risk management and imprudent investment decisions could erode banks’ capital, regardless of the amount raised during recapitalisation.

The Deputy Governor, Corporate Services, CBN, Dr Muhammad Sani Abdullahi, reinforced the position, saying capital was only the starting point for building a resilient banking system.

He said banks must combine stronger capital buffers with sound governance, effective internal controls and comprehensive risk-management systems covering credit, market, liquidity and operational risks.

The renewed focus on offshore investments therefore forms part of the CBN’s broader post-recapitalisation supervisory strategy to ensure that banks deploy the additional capital prudently without creating new vulnerabilities.