Significant Investment Essential for Nagad’s Sustainability

Bangladesh Bank has emphasised that while the current operations of the mobile financial service (MFS) provider Nagad have shown improvement, substantial investment—either domestic or foreign—is crucial to ensure its long-term sustainability. The central bank noted that any such investment would be welcomed positively.

Speaking at a briefing at the Bangladesh Bank headquarters on Tuesday, 24 February, Executive Director and spokesperson Arif Hossain Khan highlighted the importance of strengthening Nagad’s foundation for the future.

Earlier in the day, following 11:00 am, Member of Parliament Barrister Mir Ahmad Bin Qasem Arman met with the Governor of Bangladesh Bank to discuss proposals for attracting foreign investment into Nagad, which operates under the Bangladesh Post Office.

Mr Khan acknowledged that Nagad had previously faced a severe crisis. “Given its large customer base, Bangladesh Bank appointed an administrator and an administrative team to oversee its operations,” he said. “Over an extended period, this team has significantly improved the institution’s financial indicators, transaction records, and overall operational efficiency.”

However, he cautioned that these measures alone do not constitute a permanent solution. He stressed that robust and sustainable growth would require major investment. As the country’s second-largest MFS provider, Nagad’s failure could create a monopoly-like situation in the market, potentially harming consumers.

Mr Khan further stated that there had been earlier initiatives to attract foreign investment through international tender processes, which had received Bangladesh Bank’s approval. However, the process was not finalised during the interim government’s tenure. With the new government in office, the central bank is awaiting directives from the relevant ministry and will act in accordance with governmental decisions.

Allegations of past irregularities within Nagad will be addressed through proper legal channels, he confirmed. Simultaneously, he emphasised that ensuring the necessary investment is critical to maintain normal operations.

As Nagad’s ownership involves the Bangladesh Post Office, a government entity, the spokesperson clarified that all final decisions rest with the government. Bangladesh Bank will provide technical guidance and advisory support as required.

Summary of Key Points on Nagad

The central bank has reinforced that strategic investment, coupled with government oversight, is key to ensuring Nagad continues to serve millions of customers reliably while maintaining a competitive and secure financial services market.