Bangladesh Bank has indicated that the country’s leading mobile financial service (MFS) provider, Nagad, has significantly mitigated its operational and financial risks. However, the central bank emphasised that substantial investment is essential for the service to maintain long-term viability. According to officials, both domestic and foreign investment inflows would have a positive impact on the company’s growth and stability.
Speaking at a briefing at the Dhaka central office on Tuesday (24 February), Bangladesh Bank’s Executive Director and spokesperson Arif Hossain Khan noted, “Nagad faced a severe financial crisis in the past. Owing to its large customer base and market position, Bangladesh Bank appointed an administrative team to oversee the institution. Their continued efforts have led to measurable improvements in financial indicators, transaction transparency, and overall operational efficiency. Nevertheless, these measures alone cannot ensure sustainability. Significant investment is necessary to establish a strong and enduring foundation.”
Earlier, Barrister Mir Ahmad Bin Qasem Arman, a Member of Parliament, held discussions with the central bank governor regarding proposals for foreign investment in Nagad. The meeting focused on investment procedures and relevant regulatory guidelines, highlighting the government’s interest in strengthening the MFS sector.
Current Status of Nagad
| Indicator | Description | Remarks |
|---|---|---|
| Customer Base | Over 1 crore customers | Second largest MFS provider in Bangladesh |
| Ownership | Bangladesh Post Office | Government-owned; final decisions rest with the authorities |
| Administrative Team | Appointed | Ensured improvements in financial and operational performance |
| Foreign Investment | Under consideration | Previous international tenders not finalised; awaiting new government directives |
| Risk & Sustainability | Moderately controlled | Long-term stability difficult without substantial investment |
Arif Hossain Khan further stated that some past irregularities at Nagad would be addressed through legal channels, while continuous operations require securing necessary investment. He added, “If Nagad fails to sustain itself, the MFS market may become monopolised, potentially harming consumers. Bangladesh Bank is prepared to provide technical support and policy advice to the government if needed.”
The spokesperson’s remarks underline that Nagad’s future is not solely dependent on the administrative team’s efficiency. Without major investment and a robust regulatory framework, the institution may struggle to remain viable in the long term. Given Nagad’s role as the country’s second largest MFS provider, serving millions of customers, its stability is critical to Bangladesh’s digital economy.
Ensuring Nagad’s sustainable future will require timely government directives, streamlined investment procedures, and strong policy implementation to safeguard the broader financial ecosystem.