The CBN FX Code: Moving From Rules to Principles
The introduction of the draft CBN FX Code marks a significant milestone in Nigeria’s foreign exchange market regulation as it signifies a shift away from a regulatory approach that is largely rules-based toward a more dynamic, principles-based regulatory approach. Effectively,
The CBN FX Code: Key Principles
The draft FX Code, issued by the Central Bank of Nigeria (CBN) in October 2024, establishes a set of principles designed to promote a robust, fair, and transparent foreign exchange market. The FX Code seeks to enhance the integrity and...
Intermediary Liability: Legal Considerations for Tech Platforms
Intermediary liability refers to the legal responsibility of technology platforms for the content posted by their users. In Nigeria, this issue has gained increasing relevance with the rise of social media use, online defamation claims and legislative interest in regulating...
Central Bank Immunity and Fundamental Human Rights: Matters Arising
A recent court decision, Chris vs. CBN, raises important questions regarding the doctrine of central bank immunity in Nigeria. In this case, the Court upheld a new central banking regulation (“Regulation 6a”) that requires Nigerian banks to collect customers' social...
Private Equity Investments in Private Companies – Financial Assistance Considerations
The prohibition of financial assistance to private equity firms and other equity investors is probably the most important legal barrier to the growth of the local leveraged buyout market. With the passage of the Companies Act in 2020, private companies...
Some Compliance Learnings from FCCPC’s $220 million fine on Meta
Until FCCPC's Decision imposing a $220m fine on Meta has been successfully appealed, the legal principles enumerated in the decision as well as the conclusions reached therein are generally legally binding on businesses operating in Nigeria. Without a doubt, the...
A Primer on Hell or High Water Clauses in Aviation Leases
"Hell or high water clauses" are a standard fixture of aviation leases and it appears that courts will generally enforce "hell or high water clauses" in aviation leases, in the absence of extenuating factors. This legal update provides a primer...
Proposed New Rules on the Issuance and Allotment of Private Companies: Some Legal Considerations
The Securities & Exchange Commission (the “SEC”) is seeking to regulate debt issuances by private companies and has recently published a draft of the new rules (the “Draft”) for comments. The Draft is the legal framework under which private companies...
Assessing Key Man Risk for Limited Partners in Africa-focused Private Equity Funds
Limited partners investing in Africa-focused private equity and venture capital funds are increasingly prioritising key man risk, as evidenced by several recent opinions we've issued on the topic. In one of those cases, a key man in a private fund...
New Minimum Share Capital Requirements For Nigerian Banks: Some Legal Considerations for Bank Investors and Shareholders
The latest central banking policy decision facing commercial banks in Nigeria is a new policy mandating commercial banks to increase the regulatory share capital for carrying on the business of banking in Nigeria by up to a factor of 10[1]....