By 
The Central Bank of Nigeria (CBN) has issued a stern warning to bank Chief Executive Officers (CEOs) and chairmen, mandating that they publish their annual financial statements within 12 months after the close of the financial year or face immediate dismissal.
This directive, announced in the Monetary, Credit, Foreign Trade, and Exchange Policy Guidelines for 2024-2025, was published on the CBN’s website. It underscores the apex bank’s commitment to enforcing transparency and accountability within the banking sector.
The CBN’s warning targets non-compliance with financial reporting requirements, specifically regarding the publication of audited financial statements. According to the guidelines, banks that fail to publish their accounts within the stipulated time frame will see their CEOs and chairmen relieved of their duties.
Despite the strong warning, the likelihood of this scenario is considered low, as most banks are publicly quoted and have a solid track record of adhering to corporate governance standards. Listed banks, in particular, must comply with stock market rules, which require them to submit audited financial reports no later than 90 days after the end of the financial year or 30 days after each quarter. Regulatory data shows that Nigerian banks consistently meet these deadlines.
In the section addressing the publication of annual financial statements, the CBN emphasized that its authority to remove non-compliant CEOs and chairmen is backed by the Banks and Other Financial Institutions Act (BOFIA) 2020. According to this act, banks must secure the CBN’s approval and publish their audited financial statements in two nationally circulated daily newspapers within three months after the close of the financial year.
The report further stipulated that all banks and their subsidiaries must maintain December 31 as their accounting year-end to ensure consistent supervision and reporting across the sector.
The CBN’s directive reads: “The CBN shall continue to hold the Board Chairman and Managing Director/Chief Executive Officer (MD/CEO) of a defaulting bank directly responsible for any breach and impose appropriate sanctions, which may include: barring the MD/CEO or their nominee from participating in the Bankers’ Committee; suspending the foreign exchange dealership license of the bank; and disclosing the reason for such suspension to the Nigerian Exchange Group (in the case of publicly quoted companies). If accounts remain unpublished for 12 months after the bank’s financial year-end, the Chairman and MD/CEO will be removed from office.”
The CBN also directed banks to adhere to regulatory capital and supervisory guidelines, revising the Basel II framework and introducing Basel III standards. The move aims to bolster risk management, governance practices, and capital adequacy across Nigeria’s banking sector.
The CBN emphasized that the updated policy guidelines are designed to mitigate risks such as excessive leverage, while strengthening the resilience of Nigerian banks through the accumulation of higher quality capital and liquidity buffers.
Additionally, the apex bank highlighted the importance of credit risk management, mandating that loan agreements include an explicit undertaking from borrowers, granting the CBN access to and control over deposits of defaulting obligors within the banking industry.
The CBN also reaffirmed its commitment to maintaining a reliable, efficient, and secure national payments system through the continued enforcement of policies and collaboration with key stakeholders. As part of its Payments System Vision (PSV) 2025 initiative, the CBN aims to enhance the safety and efficiency of the payment system, deepen financial inclusion, and promote competition among payment service providers.
The statement concluded: “The CBN shall continue to implement the Payments System Vision (PSV) 2025 throughout the 2024/2025 fiscal years, with the aim of promoting a payment system that is nationally utilized, internationally recognized, and supportive of economic activities.”
Comments