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CBN To Sack Chairmen, MDs of Banks

The Central Bank of Nigeria (CBN) had said that CEOs and chairmen of banks that failed to publish their financial statements within the regulatory period would be sacked.

This was contained in the monetary, credit, foreign trade and exchange policy Guidelines for 2016/ 2017 finacial year issued by the apex bank, yesterday. CBN said:

In line with BOFIA 2010 LFN, banks are required, subject to the written approval of the Central Bank of Nigeria, to be published not more than four months after the end of each fiscal year, audited financial statements (statement of financial position and statement of comprehensive income) in a national newspaper printed and distributed in Nigeria.

To facilitate the implementation of consolidated supervision, all banks, discount houses and their subsidiaries must continue to adopt 31 December as the accounting year-end

The CBN shall continue to keep the Board Chairman and Managing Director of a failing bank directly responsible for any violation and impose appropriate sanctions, which may include the following: Barring the Managing Director or his/her nominee from participation in the Bankers’ committee and disclosure of the reason for the suspension, suspension of forex dealership license of the bank and its name sent to the Nigerian stock exchange (in the case of a public quoted company); and

the removal of the chairman and Managing Director from office if the accounts are not published for 12 months after the end of the Bank’s financial year.

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