Accountability for Bad Loans Lies with Bank Directors

The article discusses the issue of bad loans in Nigeria, asserting that the responsibility for these financial failures rests with bank directors and shareholders rather than the Central Bank of Nigeria (CBN). It argues that the legal framework under the Companies and Allied Matters Act (CAMA) 2020 places significant responsibilities on shareholders and directors, who are not merely passive observers but active participants in corporate governance.

The article highlights that directors have fiduciary duties to act in the best interest of their companies and must exercise care and skill in their decision-making processes. It calls for shareholders to take an active role in interrogating financial statements and managing risks, especially during economic downturns.

The article warns against shifting blame to the CBN without acknowledging the statutory roles of directors and shareholders, emphasizing that accountability is crucial for maintaining stability and transparency in the banking sector.