CBN Warns Non-Interest Finance Institutions of Risks

The Central Bank of Nigeria (CBN) issued a warning regarding the increasing governance and technology risks faced by non-interest finance institutions during its second annual interaction session with the Financial Regulatory Advisory Council in Abuja. Mr. Philip Ikeazor, CBN Deputy Governor for Financial System Stability, highlighted that while non-interest finance institutions are becoming increasingly strategic to Nigeria's financial ecosystem, they are exposed to new vulnerabilities that could erode public confidence and threaten financial stability if left unaddressed.

Dr. Rita Ijeoma, Director of Financial Policy and Regulation, identified risks such as non-compliance and operational vulnerabilities. The CBN remains committed to strengthening Shariah governance and regulatory clarity, establishing mandatory constitutive frameworks across non-interest finance institutions to ensure effective oversight and compliance.

The session aimed to deepen collaboration and promote knowledge sharing among industry practitioners, with Professor Bashir Umar and Professor Abdul Razzaq Alaro emphasizing the importance of regulatory engagement and the implementation of resolutions to improve governance standards in the sector.