The Central Bank of Nigeria (CBN) on Friday released corporate governance guidelines for commercial banks, financial holding Companies (FHCs), merchant banks, non-interest and payment service banks.
In a circular signed by Chibuzo Efobi, CBN’s director, financial policy and regulation, the apex bank said the guidelines take effect August 1, 2023.
The circular said the new guidelines supersedes all previous codes, circulars, and related directive on corporate governance issued by the CBN.
“Banks and financial holding companies are invited to note the responsibilities imposed on their boards by these guidelines and especially on the executive compliance officers (where applicable)”, the circular stated.
The Financial Reporting Council (FRC) of Nigeria in 2019 issued the Nigerian Code of
Corporate Governance (hereinafter referred to as “NCCG 2018”) as the single Corporate
Governance Code for the country.
The NCCG 2018 replaced all sectoral codes in Nigeria including the extant Code of Corporate Governance for Banks and Discount Houses in Nigeria issued by the Central Bank of Nigeria (CBN) in May 2014.
Following the pronouncement of the FRC, for sector regulators to issue sector-specific guidelines on corporate governance for institutions under their regulatory purview, the CBN said it has adapted the Principles and Recommended Practices of NCCG 2018 in developing this Guidelines for Commercial, Merchant, Non-Interest and Payment Service Banks (hereinafter referred to as “bank(s)”, taking into account, the peculiarities of the sub-sectors.
“The CBN, pursuant to the provisions of Section 2(d) of the CBN Act 2007, and Sections 56(2) and 67(1) of the Banks and Other Financial Institutions Act (BOFIA 2020), hereby issues this regulation to be cited as the “Corporate Governance Guidelines for Commercial, Merchant, Non-Interest and Payment Service Banks in Nigeria”, the CBN said.
