Directors, Shareholders, Not CBN, Responsible for Bad Loans

The article asserts that the responsibility for Nigeria's bad loans crisis rests with bank directors and shareholders, not the Central Bank of Nigeria (CBN). It criticizes the tendency to shift blame away from those directly involved in corporate governance, highlighting the importance of the Companies and Allied Matters Act (CAMA) 2020.

This act empowers shareholders to appoint and remove directors, reinforcing their control over company management. The article outlines the legal obligations of directors, including acting in good faith and exercising due diligence, as stipulated in sections 305 and 306 of CAMA 2020.

It argues that shareholders must actively engage in overseeing financial statements and risk exposure to prevent moral hazards. The piece concludes that calling for the CBN to sack directors without acknowledging shareholders' responsibilities undermines the foundational principles of corporate governance and accountability in Nigeria's financial system.