CBN's Insider Credit Rules Prompt Bank Leadership Exits
The Central Bank of Nigeria (CBN) has revealed that some bank owners, shareholders, and board members have left the banking industry due to stricter enforcement of insider credit rules. This announcement was made by Dr Olubukola Akinnwunmi, the CBN’s Director of Banking Supervision, during the 38th Seminar for Finance Correspondents and Business Editors in Abuja.
Although specific individuals or banks were not named, Akinnwunmi connected these exits to the CBN’s February 2025 insider credit circular and its commitment to enforcing prudential requirements. He stated that directors involved in insider credit abuses risk losing their board positions.
The CBN's rigorous monitoring of insider lending has intensified, with a focus on compliance with the Banks and Other Financial Institutions Act (BOFIA) 2020. Akinnwunmi warned that weak corporate governance could lead to banking distress, regardless of strong capital positions, and identified excessive risk-taking and poor oversight as significant issues.
Plus234Feed summary based on reporting from Nairametrics. Read the original report below.
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