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CBN Warns Non-interest Banks Against Governance, Compliance Risks

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By Yusuf Danjuma Yunusa

 

 

The Central Bank of Nigeria has warned non-interest financial institutions against governance and compliance risks capable of undermining public confidence and financial stability in the country’s growing Islamic finance sector.

 

The warning was contained in a statement issued by the apex bank on Monday following the 2nd Annual Interactive Session between the CBN Financial Regulation Advisory Council of Experts and the Advisory Committees of Experts of Non-Interest Financial Institutions held at the CBN Auditorium in Abuja.

 

Speaking through the Director of the Financial Policy and Regulation Department, Rita Sike, the Deputy Governor, Financial System Stability, Philip Ikeazor, said the rapid expansion of the industry had increased exposure to operational and regulatory vulnerabilities.

 

The statement read, “The Deputy Governor, however, observed that as the industry grows in size, sophistication, and interconnectedness, it faces unique risks, particularly non-compliance risk, governance challenges, operational vulnerabilities, and emerging technological risks.

 

“He warned that such risks, if not properly managed, could undermine public confidence, financial stability, and the overall credibility of the non-interest finance ecosystem.”

 

According to the CBN, the engagement was part of ongoing efforts to strengthen Shariah governance, improve regulatory clarity, and reinforce risk management standards within the non-interest financial services industry.

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The apex bank noted that non-interest financial institutions continued to play an increasingly important role in Nigeria’s financial system by providing ethical and Shariah-compliant alternatives to conventional banking.

 

It stated that the institutions were also contributing to financial inclusion, real sector financing, micro, small and medium enterprises development, and shared prosperity.

 

The CBN further explained that the establishment of FRACE and the mandatory constitution of ACEs across all non-interest financial institutions were designed to institutionalise a harmonised governance framework for the sector.

 

According to the statement, sustained interaction between FRACE and ACEs remained critical to ensuring that regulatory expectations were properly understood and consistently implemented across the industry.

 

“The objectives of today’s session include fostering the institutionalisation and effective operation of a robust Shariah governance system within Non-Interest Financial Institutions, and providing a structured platform for dialogue, knowledge-sharing, and collaboration,” Ikeazor was quoted in the statement.

 

In his remarks, the Deputy Chairman of FRACE, Prof. Bashir Umar, said the interactive session was aimed at strengthening governance within the non-interest finance sub-sector and promoting constructive engagement between regulators and industry advisory committees.

 

He also commended the management of the CBN for reviving the session, which was first introduced in 2014.

 

Earlier in her welcome remarks, Sike reaffirmed the apex bank’s commitment to building a strong and well-governed non-interest financial services industry.

 

 

She noted that the growing diversity of products and delivery channels, particularly the emergence of Islamic fintech, had increased the need for stronger regulatory oversight and continuous engagement among industry stakeholders.

 

“The growing diversity of products, institutions, and delivery channels, particularly with the emergence of Islamic fintech, underscores the need for continuous dialogue, sound regulatory oversight, and robust advisory input from scholars and practitioners,” she said.

 

The session featured technical presentations on Shariah non-compliance risks in non-interest banks and the role of Islamic fintech in driving financial inclusion.

 

Participants at the event included members of FRACE, chairmen and members of various ACEs, managing directors of non-interest banks, senior CBN officials, and representatives of the Bank of Industry and the Securities and Exchange Commission.

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Insecurity:Sack Service Chiefs, Pastor Adeboye Urges FG

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By Yusuf Danjuma Yunusa

The General Overseer of the Redeemed Christian Church of God, Pastor Enoch Adeboye, has urged the federal government to give Nigeria’s security chiefs a 90-day deadline to eliminate terrorists across the country or resign from office.

Adeboye made the call in a video shared on X on Tuesday in which he expressed concern over the country’s security situation and urged authorities to act swiftly against those responsible for the violence.

Addressing the government, the cleric said security chiefs should be held accountable for delivering results in the fight against terrorism.

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“If I were asked to make suggestions, I would say quietly to our government, ‘Move fast and tell our security chiefs, get rid of these terrorists within 90 days or resign,” he said.

The cleric also called on the government to go beyond targeting terrorists and focus on those financing and supporting their activities.

“When giving orders to the service chiefs this time around, we should make it clear to them that they are not only to eliminate the terrorists; they should eliminate their sponsors, no matter how influential they may be,” he added.

Adeboye recalled advising a former Nigerian president to issue a similar ultimatum to security chiefs in the past, noting that although the directive was given, it was not fully enforced when the deadline elapsed.

According to him, the experience underscored the need for stronger political will and strict enforcement of directives aimed at ending insecurity.

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School Abductions: NUT Begins Nationwide Rally Today

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By Yusuf Danjuma Yunusa

Public schools across Oyo State shut down Monday as teachers joined a nationwide protest called by the Nigeria Union of Teachers over the ongoing captivity of pupils and teachers abducted 18 days ago.

Armed men attacked three schools in Oriire Local Government Area on May 15, taking students and teachers from Community Grammar School, Baptist Nursery and Primary School, and L.A. Primary School.

Protests erupted in Oyo and Ogun states, with residents and civil society groups demanding immediate release of the victims.

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In Ogbomoso, a distraught mother whose children were among the kidnapped broke down in tears: “Where will I start from? The children are my tomorrow. Please help me.”

Teacher Ajibola Aboderin said: “How can anyone be so heartless as to kidnap a two-year-old? This country is deteriorating.”

Compliance with the strike was reported across all 33 local government areas of Oyo State. Parents turned children away from closed schools.

The union calls on federal and state governments to intensify security efforts and secure the captives’ release.

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Press centre Food Vendor Hajiya Hadiza Is Dead

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The Kano press community has been thrown into mourning following the death of Hajiya Hadiza, a popular food vendor.

Known for her warm personality and dedication to her business, Hajiya Hadiza reportedly passed away on Monday morning after a brief illness.

News of her death spread rapidly across the Press Centre, and environs on Monday, leaving many journalists, media workers and associates in shock.

Colleagues described the development as devastating, saying her absence would be deeply felt within the media community after nearly two decades serving meals to media practitioners and members of the public .

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For years, Hajiya Hadiza’s food stand was more than a place to eat. It served as a meeting point where reporters, editors and guests gathered for meals, conversations and moments of relaxation amid their demanding schedules.

Beyond her role as a food vendor, she was widely recognized for providing employment opportunities to young women, many of whom learned valuable skills and earned a livelihood through her business.

Several journalists who spoke on the development recalled her kindness, generosity and motherly disposition. They noted that she treated customers with respect and maintained strong relationships with people from different walks of life.

Members of the NUJ Press Centre described her as an integral part of the environment, saying her contributions over the years helped shape the social fabric of the press community. They prayed for Almighty Allah to forgive her shortcomings and grant her eternal rest.

As tributes continue to pour in, many say Hajiya Hadiza’s legacy will endure through the countless lives she touched, the young women she empowered and the memories she created among generations of journalists who passed through the Press Centre.

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