Cardoso Urges Bank Directors to Strengthen Risk Management and Corporate Governance After Recapitalisation

Governor of the Central Bank of Nigeria (CBN), Dr Olayemi Cardoso, has called on bank directors and corporate leaders to place risk management at the centre of corporate governance, stressing that Nigeria’s financial stability now depends on stronger board-level accountability following the recent banking recapitalisation exercise.

Speaking at the induction ceremony of new members of the Chartered Institute of Directors Nigeria (CIoD) in Lagos, Cardoso said the post-recapitalisation era requires a shift from passive oversight to active stewardship, where directors are expected to anticipate risks and respond proactively in a fast-changing financial environment.

He explained that the recapitalisation reform was designed to strengthen banks, improve investor confidence, and support long-term economic growth. However, he warned that capital strengthening alone would not ensure stability unless backed by strong risk governance and disciplined decision-making at board level.

Cardoso further noted that the CBN has introduced stricter regulatory measures, including Risk-Based Capital Requirements, enhanced disclosure rules, and tighter oversight of insider-related lending. He also referenced past regulatory interventions, including the dissolution of some bank boards in 2024 and lessons from the 2009 banking crisis, to underline the consequences of weak governance.

Reiterating the new regulatory direction, the CBN governor said the framework is not punitive but designed to improve discipline and sustainability in the banking sector. He urged directors to act as custodians of financial stability, discourage reckless lending, and ensure that governance standards remain strong across the entire financial system.

Meanwhile, President of the CIoD Nigeria, Adetunji Oyebanji, encouraged members to play a more active role in shaping national economic policy, noting that the institute’s value lies in the intellectual contribution of its members and its engagement with government and regulators on key industry issues.