The Central Bank of Nigeria (CBN) has threatened to remove the chairmen and chief executives of any commercial bank whose accounts remain unpublished for 12 months after the end of the bank’s financial year.
The apex bank, in its Monetary, Credit, Foreign Trade and Exchange Policy Guidelines for Fiscal Years 2018/2019 noted that in accordance with the provisions of the Bank and Other Financial Institutions Act (BOFIA), banks are required, subject to the written approval of the CBN, to publish not later than four months after the end of each financial year, their audited financial statements (statement of financial position and statement of comprehensive income) in a national daily newspaper printed and circulated in Nigeria.
The CBN, in the new guidelines, said it would hold the board chairman and CEO of any defaulting bank directly responsible for any breach.
It further added that appropriate sanctions would also be imposed on the defaulting banks which could include
- Barring the chief executive or his/her nominee from participation at the Bankers’ Committee and disclosing the reason for such suspension.
- Suspension of the foreign exchange dealership license of the bank; and its name sent to the Nigerian Stock Exchange (in the case of a public quoted company).
- Removal of the chairman and MD from office if the accounts remain unpublished for 12 months after the end of the bank’s financial year.