Regulatory Alerts2017-03-01 | OFI/17/70Immediate Adoption of Examiners Recommeded Provision and Audit Adjustments by the OFIs
The Central Bank of Nigeria (CBN) and the Nigeria Deposit Insurance Corporation (NDIC) have identified that many financial institutions in Nigeria are failing to implement audit adjustments and examiners' recommended provisions as suggested by their reports. This discrepancy between the reported figures and those in the examination report is causing data distortion, affecting CBN's decision-making abilities for financial institutions. In response, the Director of Other Financial Institutions Supervision Department (OFI) has issued a directive that all OFIs must immediately pass all necessary entries, including audit adjustments and examiners' recommended provisions, into their ledgers and reflect this in monthly returns to CBN. Additionally, any future unimplemented adjustments or provisions will result in appropriate sanctions according to the type of OFI.