Friday, October 3, 2025
  • Share your story
  • About
  • Contact
Economy FootPrint
  • Home
  • News & Politics
  • Opinion
  • Finance & Economy
  • Aviation
  • Editorial
  • Transport & Blue Economy
  • Features | Analysis
  • Health | Environment
Economy FootPrint
Home Finance | Insurance | Pension

CBN Orders Bank Directors With Non-Performing  Loans To Resign

EconomyFoot Print by EconomyFoot Print
February 19, 2025
in Finance | Insurance | Pension, Top News
Reading Time: 2 mins read
0
Respite for BDCs as CBN Extends Deadline for Temporary FX Sales
Share on FacebookShare on Twitter

By Chris Agabi

All bank directors with non-performing insider-related loans are to resign from their offices immediately following a directive by the Central Bank of Nigeria (CBN).

The CBN issued the directive in a circular dated Monday, February 17, signed by Adetona Adedeji, the Acting Director of Banking Supervision.

The CBN also ordered the banks to recover outstanding debts by enforcing collateral recovery and seizing shareholdings of affected directors.

The apex bank said it is to strengthen corporate governance and enhance risk management in the banking sector.
Our correspondent recalled that several banks that failed on the past were largely due to insider loan deals that failed and other corporate governance infractions.

Insider loans are the credit facilities granted by the bank to its executives, directors, employees, major shareholders and related parties.

The apex bank further directed that banks must regularise all insider-related facilities within 180 days, particularly those that exceed limits prescribed in Section 19 (5) of the Banking and Other Financial Institutions Act (BOFIA), 2020, and were previously approved without specific timelines.

The circular said: “Directors with non-performing insider-related facilities are required to step down immediately from the board, while the bank should commence immediate remediation of the loans through the recovery of the collaterals, including the shareholdings of the affected directors.”

It also stressed the importance of compliance with Section 19 of BOFIA 2020, which limits insider-related loans:

“Banks are required to regularise within 180 days, all insider-related facilities above the limits prescribed in Section 19 (5) of BOFIA, 2020.
“Individual director-related facilities must be brought within the 5 per cent paid-up capital limit, while the aggregate insider facilities for the bank must not exceed 10 per cent of its paid-up capital.”

Related posts

Nigeria’s Economy Requires More Than Short-term Interventions – Elumelu

Tony Elumelu Bags 2025 Appeal of Conscience Award 

October 2, 2025
Leadway Assurance Pays N67 Billion Claims in 2023

Leadway Pays Abot N500bn Claims in 9 Years

October 2, 2025
Previous Post

Transcorp Group President to Deliver Keynote at Women in Energy Forum, NIES 2025

Next Post

Customs Pledges Crackdown on Smugglers at Border Areas

Next Post

Customs Pledges Crackdown on Smugglers at Border Areas

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

RECOMMENDED NEWS

NYSC To Deploy Corps Members To NDLEA Rehab Centers

5 months ago

The Raging Minimum Wage Conversation and Potential Economic Impacts

1 year ago

CG Customs Play Host To Governor Zulum, Emphasises Collaboration on Border Security, Trade Facilitation

1 year ago

Ortom ex-Chief of Staff Attacker’s Demand  N100M for Wife, Cook’s Release

1 year ago

FOLLOW US

  • 86.2k Followers

BROWSE BY CATEGORIES

  • Aviation
  • Brands
  • Crime
  • Editorial
  • Features | Analysis
  • Finance | Insurance | Pension
  • Health | Environment
  • Industry | Trade | Commerce
  • International
  • Interview | Profile
  • News
  • Opinion
  • Politics
  • Small Business
  • Sports
  • Top News
  • Transport & Blue Economy
  • Uncategorized

BROWSE BY TOPICS

2023 Benue Budget Abuja-Kaduna Rail Access Corporation Access pension airports concession Aviation Ayu Benue Budget Benue Community Buhari Business CBN Central Bank Dana Air Economy FGPL Herdsmen Herdsmen attacks insecurity insurance Maritime Min of Transport MSMEs NAICOM NCAA Nigeria Nigeria -Cameroon Border Post Nigeria Air NRac Onne Port ooh Orrom Ortom PDP PenCom pension Railway Sambo Jaji Transcorp Transcorp Group Transcorp Hotels Plc UBA Ukohol Wike Wildon Ideva

BROWSE BY CATEGORIES

  • Aviation
  • Brands
  • Crime
  • Editorial
  • Features | Analysis
  • Finance | Insurance | Pension
  • Health | Environment
  • Industry | Trade | Commerce
  • International
  • Interview | Profile
  • News
  • Opinion
  • Politics
  • Small Business
  • Sports
  • Top News
  • Transport & Blue Economy
  • Uncategorized

Economy Footprint

The EconomyFootprint is published by Ideas Tent Communications Ltd®. All Rights Reserved.

Follow us on social media:

Recent News

  • Tony Elumelu Bags 2025 Appeal of Conscience Award 
  • Leadway Pays Abot N500bn Claims in 9 Years
  • Troops Crush Bandits Attack, Kill Two Terrorists in Taraba

Category

  • Aviation
  • Brands
  • Crime
  • Editorial
  • Features | Analysis
  • Finance | Insurance | Pension
  • Health | Environment
  • Industry | Trade | Commerce
  • International
  • Interview | Profile
  • News
  • Opinion
  • Politics
  • Small Business
  • Sports
  • Top News
  • Transport & Blue Economy
  • Uncategorized

Recent News

Nigeria’s Economy Requires More Than Short-term Interventions – Elumelu

Tony Elumelu Bags 2025 Appeal of Conscience Award 

October 2, 2025
Leadway Assurance Pays N67 Billion Claims in 2023

Leadway Pays Abot N500bn Claims in 9 Years

October 2, 2025
No Result
View All Result
  • Home
  • Politics
  • News
  • Sports
  • Opinion