CBN Issues Directive: Bank Directors with Bad Loans Must Resign

 The Central Bank of Nigeria (CBN) has issued a stern directive requiring bank directors with non-performing loans (NPLs) to resign from their positions.

 This move is part of the CBN’s ongoing efforts to strengthen the banking sector and maintain financial stability. The CBN is concerned about the high level of NPLs in some banks, which it believes could pose a risk to the overall health of the financial system.

The directive mandates that any bank director whose loans are classified as non-performing must immediately step down from the board. The CBN is also strengthening its oversight of banks to ensure compliance with this directive. 

 This action is expected to improve corporate governance in banks and promote responsible lending practices. The CBN’s move underscores its commitment to maintaining a healthy and robust banking sector in Nigeria.