Nagad privatisation depends on new govt, says BB governor

Privatising Nagad, the provider of mobile financial services (MFS) under the postal department, largely depends on the decision and policy of the new government, Bangladesh Bank Governor Dr Ahsan H Mansur has told the local coordinator of potential overseas investors.

Once the policy is finalised, the process of bringing in investors may start, he has said.

The governor revealed this during a meeting with barrister Mir Ahmad Bin Quasem Arman, a legal representative of the foreign investors, at the Bangladesh Bank on Tuesday.

Speaking to reporters after the meeting, Arman, a newly elected parliamentarian from Bangladesh Jamaat-e-Islami, said the government's position on Nagad had not yet been finalised.

"If the government decides to transfer Nagad to private investors, as considered during the interim administration, the investment process will move forward," he said.

He said the potential investors were primarily interested in Bangladesh's digital banking sector and had been exploring investment opportunities since the term of the interim government.

Investors, he also said, were keen to conduct an audit of Nagad to assess whether investing in the company would be financially viable.

Addressing concerns over a possible conflict of interest, Arman said he was acting in a professional capacity as a lawyer rather than a member of parliament.

He noted that he had previously worked with international companies, including Dell, Microsoft, Apple, and Uber, and was now providing legal support to the foreign investors interested in Nagad.

Arief Hossain Khan, spokesperson and executive director at the central bank, said some four applications on reviving Nagad had so far been placed with the banking regulator.

He said the central bank would proceed further with the applications once the BNP-led elected government gave the green light to the interim government's decision to hand Nagad over to private investors.

"Nagad went through a disaster. The Bangladesh Bank appointed an administrator and a team in the interest of the public. Over the past year, financial indicators have improved significantly under the administrator," he further said.

"Many customers are involved in the institution, and its user base is very large. If Nagad is not brought under proper management, mobile banking could become a monopoly in the hands of a single company," he explained.

Nagad, launched in 2019 under the Bangladesh Post Office, has faced persistent allegations of regulatory irregularities and financial misconduct during the previous Awami League government.

Following the political upheaval in 2024, the Bangladesh Bank dissolved Nagad's previous board and appointed an administrator, though the High Court later declared the move illegal.

The postal department subsequently assumed control of the company.

In February, the Bangladesh Bank filed a case against several former Nagad officials, including former chairman Syed Mohammad Kamal and managing director Tanvir Ahmed Mishuk, over allegations of financial misappropriation.

An inspection found a shortfall of more than Tk 1.01 billion in real money against issued e-money in trust and settlement accounts. Investigators also reported irregularities, including an alleged e-money deficit amounting to Tk 6.45 billion.

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