AfrAsia Bank Maintains Stability Despite Nigerian Regulatory Shift on Shareholding Stakes

AfrAsia Bank has moved to clarify its regulatory standing and operational stability following an announcement by Access Holdings Plc regarding new mandate changes from the Central Bank of Nigeria.

The bank confirmed that its parent company may be required to reduce its majority stake in AfrAsia due to technical compliance requirements under Section 19(8)(c) of the Nigerian Banks and Other Financial Institutions Act.

This regulation specifically affects how Nigerian financial holdings must account for foreign equity investments.

Despite these potential changes in shareholding structure, AfrAsia Bank emphasised that its daily operations remain unaffected and continue as normal.

Regulatory Framework

The bank clarified its corporate structure, noting that it functions as a subsidiary of The Access Bank UK.

Consequently, it remains under the direct supervision of both British regulatory authorities and the Bank of Mauritius.

AfrAsia’s leadership sought to provide stability to the market following the 5 May announcement from Access Holdings.

“The Access Bank UK maintains its commitment to the bank, its customers, and its partners,” stated CEO Vishal Joyram.

Protection of Assets

The bank reassured its stakeholders that the ongoing accounting processes in Nigeria do not impact the security of local deposits.

AfrAsia confirmed that all client assets remain fully protected under the existing Mauritian regulatory framework.

The current situation is being described by the bank as a “technical compliance requirement” that is currently being processed by the holding company in Nigeria.

Source: Defi Media