CBN Grants Approval for Another Commercial Bank To Begin Operation in Nigeria
- CBN has approved Abbey Mortgage Bank Plc’s transition into a commercial bank beyond mortgage financing
- The bank has promised to bridge mortgage banking and full-scale commercial services
- Abbey has assured that customers’ deposits continue to be protected under NDIC insurance coverage
Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
Abbey Mortgage Bank Plc has secured approval from the Central Bank of Nigeria (CBN) to begin commercial banking activities in Nigeria.
The new license now allows the Abbey to extend its activities from mortgage financing into full-scale commercial banking for all categories in the retail, corporate, SME and digital banking segments.
Source: Getty Images
A statement from the lender confirming the development stated that regulatory approval is a historic point in the bank's growth strategy and the regulator's ultimate confidence in the firm's future roadmap.
Abbey Mortgage Bank has been fully licensed by the CBN and adheres to all required regulatory frameworks, including those for capital adequacy, governance standards, and risk management systems.
Its plans for the transition include the upgrade of infrastructure, technologies, and corporate brand, even before its new commercial banking license becomes fully operational.
It will, however, continue to utilise its mortgage and real estate financing expertise as well as branch out into digital services, SME financing, wealth management, and trade financing.
The bank expects to commence operations as a commercial bank in Q4 2026.
The statement reads:
"Today marks a monumental milestone in our history, as we have received approval from the Central Bank of Nigeria to commence operation as a commercial bank.
" This is the culmination of years of growth, resilience, and the trust of our customers, shareholders, employees, and other stakeholders who have been part of our journey.
" This approval is the beginning of a new chapter, one that positions us to serve you with greater possibilities, broader access, and deeper impact. While the transition process begins now, full commercial banking operations are expected to commence in Q4 2026. Thank you for growing with us. The best is truly yet to come."
Source: Getty Images
Abbey Mortgage Bank excited
The latest approval comes on the heels of several months of strategic planning and steady performance that the lender claims has been a key factor in receiving favourable consideration from the apex bank.
In reaction to this new development, Samuel Oni, the Chairman, disclosed that the approval marks a significant stage towards the bank achieving its regional commercial banking aspirations, The Sun reports.
He said:
“The capital raise is a critical component of the bank’s strategy to secure a regional commercial banking licence and position the institution for its next phase of growth."
Paystack microfinance bank begins operations
In a related development, Paystack, the Nigerian fintech company, has launched a new subsidiary called Paystack Microfinance Bank (MFB) following its acquisition of Ladder Microfinance Bank, as it celebrates its 10th anniversary.
The company, which started in Nigeria to make payments easier for businesses, has expanded over the past decade into a broader platform operating in five African countries.
Source: Legit.ng
