CBN Warns Non-Interest Banks on Governance Risks

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

Rita Sike, Director of the Financial Policy and Regulation Department, and Philip Ikeazor, Deputy Governor for Financial System Stability, emphasized the rapid expansion of the industry and the increasing exposure to operational and regulatory vulnerabilities. The CBN noted that while non-interest financial institutions play an increasingly important role in Nigeria's financial system by providing ethical, Shariah-compliant alternatives to conventional banking, there is a critical need for stronger regulatory oversight.

The session aimed to foster institutional effectiveness and promote robust Shariah governance systems within the non-interest financial sector.