Bangladesh begins the process of privatising Nagad, a move driven by concerns over efficiency. Advisory firms have until September 15 to submit bids for the sale.
 |
| Bangladesh government initiates Nagad privatisation. Advisory firms have until September 15 to submit bids, marking a significant development in the country's mobile finance sector. Image: CH |
Dhaka, Bangladesh — September 5, 2025:
The government of Bangladesh has launched a significant move to privatise Nagad, the country’s second-largest mobile financial service provider. This decision comes at a time when Nagad is facing increasing pressure from both regulatory bodies and market competition to improve its operational efficiency. The move, driven largely by concerns from Bangladesh Bank, raises the question: What exactly is behind this shift, and what are the long-term implications for the country’s mobile financial services landscape?
On August 31, the Bangladesh Investment Development Authority (BIDA) issued a Request for Expression of Interest (REOI) inviting financial advisory firms to assist in the sale process. The firms have until September 15 to submit their proposals. BIDA’s Head of Business Development, Nahian Rahman Rochi, confirmed that the Directorate of Posts, under which Nagad currently operates, has requested the help of BIDA in selecting an advisory firm for the transaction.
At the core of this decision lies the pressing question of Nagad's operational efficiency under the Bangladesh Post Office. While Nagad has grown rapidly to become a key player in the nation’s mobile finance sector, managing the business through the Post Office has raised concerns. Bangladesh Bank Governor Ahsan H. Mansur highlighted these issues, noting that the Post Office’s involvement is not ideal for managing a modern financial technology service. “We believe technology companies are better equipped to handle the operations of Nagad,” Mansur said last week. The government's strategy now is to transfer Nagad to the private sector within a few months.
For those closely monitoring the privatisation process, the role of the advisory firm will be crucial. The selected firm will guide the transaction, conduct a thorough valuation of Nagad, and engage potential buyers. The adviser will also help structure the deal, manage stakeholder communications, and coordinate due diligence efforts. It’s expected that the firm will play a pivotal role in selecting the right buyer who can bring new growth and efficiency to Nagad's operations.
BIDA’s involvement in the process suggests that the government is taking a measured approach to ensure that the privatisation doesn’t face delays. Rochi noted that a high-level committee will scrutinize the proposals before making a final decision. With the deadline for submission fast approaching, it’s expected that a clear picture will emerge soon about the future ownership of Nagad.
Alongside the move to privatisation, Nagad has undertaken a significant cleanup effort. The company has removed over 15 million fake or inactive accounts as part of an ongoing restructuring initiative. This cleanup signals a commitment to improving operational transparency and ensuring that only active users are counted, which could enhance the company’s attractiveness to potential investors.
While the immediate concern is Nagad's operational efficiency, the long-term ramifications for the mobile finance industry in Bangladesh are far-reaching. The entry of a private-sector player with the resources and technological expertise to improve Nagad’s operations could lead to more innovative services in the mobile finance sector, improving access to financial services for millions of Bangladeshis.
However, the privatisation of Nagad also raises questions about the broader regulatory framework for mobile financial services in Bangladesh. If private players are to take the lead in this rapidly growing sector, will the government put in place regulations to ensure fair competition and protect consumers? The role of Bangladesh Bank and other regulatory bodies in shaping the future of mobile finance in the country will be critical in the coming months.
The decision to privatise Nagad marks a turning point for Bangladesh’s mobile finance sector. It reflects a growing recognition that government-run institutions might not always be the best vehicles for technological innovation and service delivery in sectors like financial technology. As the process moves forward, all eyes will be on the selection of the advisory firm and the subsequent sale process. With the right private-sector investor, Nagad could potentially unlock new efficiencies and growth opportunities for the country’s burgeoning mobile financial ecosystem.