Bangladesh Bank Governor Ahsan H Mansur on Wednesday said the government had decided to privatise Nagad, a leading mobile financial services (MFS) provider which has become mired in controversy since the political changeover last year.
"We want to boost competition and activities in the MFS sector. So, at the highest level, we have decided to privatise Nagad and bring in investors," Mansur said, adding that the decision was made to enhance competition in the MFS sector.
Mansur made the comments while speaking at the 'Cashless Bangladesh Summit–2025', organised by the Institute of Cost Management Accountants of Bangladesh.
He mentioned that an advertisement regarding the privatisation is expected within a week.
The governor said Nagad would be separated from the Post Office, as the latter currently lacks the capacity to run it effectively. "It is crucial to bring in a technology company as the main shareholder of Nagad," he added.
Will investors be attracted to such a controversial company?
Nagad began operations in 2019 as a mobile financial service provider under the Bangladesh Post Office.
However, it has become mired in scandal since, although that did not stop the Bangladesh Bank from granting it a full digital banking licence in June 2024.
After the fall of the Awami League government amid the July-August 2024 movement, the central bank dissolved Nagad's previous board and appointed an administrator in the face of allegations of irregularities in its operations and dealings, with crores of taka being misappropriated.
In February this year, an Anti-Corruption Commission found evidence that Nagad "created excessive electronic money and laundered funds" through foreign companies.
The anti-graft body also revealed that 97,000 accounts were opened on Nagad's platform without national ID verification.
Mansur expressed optimism that the move would help rebuild Nagad, enabling it to become a strong competitor in the MFS market.
However, questions remain around whether investors will be keen to pour their money into a company that has had so much scrutiny and controversy surrounding it.
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