CBN Governor Urges Bank Directors to Strengthen Governance

In a keynote address during the Chartered Institute of Directors (CIoD) induction ceremony in Lagos, Mr. Olayemi Cardoso, the Governor of the Central Bank of Nigeria (CBN), cautioned bank directors about the necessity of reinforcing corporate governance to avoid regulatory sanctions.

He highlighted that the success of the recently concluded bank recapitalization exercise largely depends on the quality of leadership and oversight provided by directors. Cardoso stated that merely meeting regulatory obligations is insufficient; directors must adopt a strategic approach to enhance resilience and boost investor confidence.

He warned that the CBN would take decisive action against institutions with weak governance structures, referencing the dissolution of boards at three banks in January 2024 due to serious governance lapses. Cardoso noted that the evolving regulatory environment demands higher discipline from directors, urging them to balance profit with sustainability and ensure compliance without relying on regulatory leniency.