The Central Bank of Nigeria has advised banks not to lend money to businesses that are impacting negatively on the environment. According to the Special Adviser to the CBN Governor on Sustainable Banking, Dr. Aisha Mahmood, the Bank is working on a set of incentives for banks in the country to imbibe sustainable banking practices.
The bank she said, is even working on a plan that will incentivise banks who do well in what it terms “sustainable banking principles”.
“The CBN wants to incentivise banks that do well in sustainable banking principles. On their own part, deposit money banks are expected to voluntarily report to the CBN their sustainable banking principles. Since these banks came in voluntarily to the sustainable banking principle initiative; once they have joined, they are expected to comply with the principles.”
One begins to wonder how many companies actually comply with practices that boost the environment as the CBN sees it. With Nigeria seeking an industrial revolution it is unlikely many companies will meet this criteria thus making this policy look like a fait accompli in the making.
