CBN Warns Non-Interest Banks on Governance Risks

The Central Bank of Nigeria (CBN) issued a warning to non-interest financial institutions regarding governance weaknesses that pose risks to compliance and could undermine public confidence in the financial stability of the country. This statement was released following the second annual interaction session of the CBN's Financial Regulatory Advisory Council, which took place at the CBN auditorium in Abuja.

Dr. Rita Sike, Director of the Financial Policy and Regulation Department, and Philip Ikeazor, Deputy Governor of Financial System Stability, emphasized the rapid expansion of the industry and its exposure to regulatory vulnerabilities.

They highlighted the unique risks faced by the sector, particularly non-compliance and operational vulnerabilities due to emerging technologies. The CBN reiterated its commitment to strengthening Shariah governance and improving regulatory clarity within the non-interest financial services industry.

The session aimed to foster institutional effectiveness and promote robust Shariah governance systems, with participation from various stakeholders, including members of the advisory council and senior officials from the banking industry.