Cbn Tells Bank Directors With Bad Loans To Step Down

The Central Bank of Nigeria CBN has directed bank directors with non-performing insider-related loans to immediately step down.

This decision is aimed at strengthening corporate governance and improving risk management in the banking sector.

The directive was issued in a circular signed by the Acting Director of Banking Supervision, Adetona Adedeji, on Monday.

"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," the circular reads.

Insider loans refer to credit facilities granted by banks to their own executives, directors, employees, major shareholders, or affiliated parties. Poor management of such loans has been a significant concern in Nigeria's banking sector, posing risks to financial stability.