Regulatory Alerts2014-05-19 | FPR/DIR/CIR/GEN/01/004Code of Corporate Governance for Banks and Discount Houses in Nigeria and Guidelines for Whistle Blowing in the Nigerian Banking Industry
The Central Bank of Nigeria has developed guidelines for promoting transparency and accountability in banks and other financial institutions. These guidelines, known as the Whistle-Blowing Policy, encourage employees and stakeholders to report instances of unethical or illegal behavior within these institutions. Under this policy, financial institutions are required to have a whistle-blowing mechanism that allows for anonymous reporting through dedicated hotlines or email addresses. The policy also provides protection for whistle-blowers who face detrimental actions from their employers as a result of their disclosures. In cases where employees suffer detriment due to their reports, they are entitled to compensation and/or reinstatement. These institutions must report all whistle-blowing activities to the CBN and NDIC on a quarterly basis and include compliance status in their audited financial statements. The guidelines emphasize the importance of transparency, integrity, and ethical conduct within Nigeria's banking sector.