The Central Bank of Nigeria (CBN) has directed bank directors with non-performing insider-related loans to step down immediately.
Insider loans refer to credits extended by a bank to its executives, directors, employees, major shareholders, or related entities.
The directive, issued in a circular signed by Acting Director of Banking Supervision Adetona Adedeji, aims to improve governance.
To reduce financial risks, the CBN instructed banks to recover debts by enforcing collateral and seizing affected directors’ shareholdings.
Banks must comply with Section 19 of the Banking and Other Financial Institutions Act 2020 regarding insider loan regulations.
Loans exceeding limits must be regularized within 180 days, ensuring compliance with the 5% and 10% capital thresholds.
