CBN tightens bank governance, enforces 10% offshore investment cap

The Central Bank of Nigeria (CBN) has stepped up enforcement of corporate governance rules in the banking industry, warning lenders against excessive investments in foreign subsidiaries and promising closer scrutiny of executives to protect the gains of the ongoing recapitalisation exercise.The apex bank said banks must demonstrate responsible management of the additional capital raised under the recapitalisation programme, with sound lending decisions, effective risk controls, and investments that do not expose depositors’ funds to unnecessary risks.