The Governor of the Central Bank of Nigeria, Olayemi Cardoso, has issued a strong warning to bank directors, urging them to improve corporate governance or face regulatory action.
Cardoso delivered this message during a high-level stakeholders’ engagement held in Abuja, where the apex bank met with key players in the banking sector. The session brought together chairmen, non-executive directors, and top executives of Deposit Money Banks (DMBs) operating across Nigeria.
Addressing participants at the meeting, the CBN governor stressed that board members must take their responsibilities more seriously in light of ongoing reforms in the financial system. He warned that weak governance practices, poor oversight, and lack of accountability would no longer be tolerated. In his words, “Strengthen governance or face regulatory action”, a clear signal that the regulator is prepared to enforce stricter discipline within the industry.Cardoso emphasised that the role of directors must go beyond routine boardroom activities. According to him, the current realities of the financial sector require leaders who are actively involved in shaping strategy, managing risks, and ensuring compliance with regulatory standards.
He further explained that strong corporate governance is essential for maintaining public trust and investor confidence. Without transparency and ethical leadership, he noted, banks risk losing credibility and weakening the financial system.The engagement also focused on the ongoing recapitalisation programme introduced by the CBN. Cardoso urged directors to ensure that increased capital levels are matched with stronger governance frameworks, stressing that financial strength must be supported by accountability and discipline.
Speaking to the gathering of industry stakeholders, he pointed out that directors must be prepared to tackle emerging challenges such as digital transformation, cybersecurity threats, and global financial pressures. He maintained that only well-governed institutions can successfully navigate these complexities. The apex bank reiterated its commitment to strict supervision, noting that any institution found violating governance standards would face regulatory intervention. This, it said, is necessary to protect depositors and ensure the stability of Nigeria’s financial system.
Cardoso also highlighted the broader role of banks in supporting economic growth. He urged participants at the Abuja meeting to align their strategies with national development goals while strengthening internal controls and risk management systems.The meeting ended with a call for directors to adopt global best practices and prioritise long-term sustainability over short-term gains. The CBN made it clear that going forward, accountability at the board level will be closely monitored.
Ultimately, the message delivered in Abuja to bank chairmen, directors, and executives was unmistakable: effective governance is no longer optional, and failure to comply will attract swift regulatory consequences.
