Regulatory Alerts2018-10-26 | FPR/DIR/CIR/GEN/07/017Code of Corporate Governance for Development Finance Institutions in Nigeria
The Central Bank of Nigeria (CBN) issued a circular on October 26, 2018, introducing the Codes of Corporate Governance for Other Financial Institutions in Nigeria. The codes aim to guide licensed Development Finance Institutions (DFIs) in establishing good corporate governance standards and practices. The CBN outlines the responsibilities of the Board of Directors, including strategic planning, performance monitoring, and ensuring compliance with laws and regulations. The document also covers shareholder rights, disclosure and transparency requirements, risk management, ethics, and professionalism. To promote transparency and integrity in reporting, DFIs are encouraged to make robust disclosures beyond statutory requirements. The CBN emphasizes the importance of having a whistle-blowing policy and mandates semi-annual reporting on compliance. The codes will come into effect on April 1, 2019.