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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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Shamaki Congratulates Yari on Appointment as Tinubu’s Campaign DG

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A chieftain of the All Progressives Congress (APC), Shamakin Marafan Sokoto has congratulated Senator Abdul’aziz Yari Abubakar on his appointment as Director-General of the APC Presidential Campaign Council for the 2027 election.

Shamaki described Yari’s appointment as well deserved, saying his wealth of political experience, leadership qualities and proven track record contributed significantly to his emergence for the important position.

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He said Yari’s experience would play a key role in mobilising support and coordinating the APC’s campaign efforts towards ensuring the success of President Bola Ahmed Tinubu and the party in the 2027 presidential election.

According to him, the appointment reflects the confidence the APC leadership has in Yari’s capacity to deliver, particularly given his years of experience in politics and governance.

Shamaki expressed optimism that Yari would bring his vast political network and organisational skills

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Call Me Chairman, Not Tony!’: Elumelu’s Blunt Correction of Trainee Splits Internet as Old Video Sparks Double Standard Fury

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By Yusuf Danjuma Yunusa

A seemingly brief exchange between United Bank for Africa (UBA) Group Chairman, Tony Elumelu, and a female graduate trainee has erupted into a nationwide conversation about cultural values, corporate etiquette, and the politics of address, after a video of the interaction went viral on social media.

The incident occurred on Thursday, August 20, 2026, during an interactive session at the graduation ceremony for UBA’s Graduate Management Accelerated Programme (GMAP) in Lagos. In the now-viral clip, the trainee began her question by greeting the billionaire businessman with a casual, “Good morning, Tony.”

Mr. Elumelu, who was serving as a mentor at the event, promptly and firmly corrected her. According to multiple reports, he told her: “No, you won’t call me Tony. You call me Mr. Elumelu, or TOE, or Chairman.” He further justified his stance, explaining that he does not subscribe to what he termed the casual, Western-style familiarity in professional settings. “I don’t subscribe to that kind of Oyinbo life, okay!” he added.

The exchange has since polarized the Nigerian public, sparking a fierce debate on social media.

One faction of netizens has rallied behind Mr. Elumelu, arguing that the trainee’s address was a clear sign of disrespect, given his status as the chairman of a major financial institution and his seniority in age. Commentators argued that in a formal setting, the use of a title is a basic sign of respect. One social media user remarked, “Common sense should make you understand that at that moment, you are not talking to your friend, but what he is, a chairman or boss, or at least an adult that is obviously older than you.”

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Conversely, a second group has come to the trainee’s defense. They argue that modern corporate culture, even within Nigerian banks, often encourages a first-name basis to foster a more egalitarian and open work environment. A former UBA staff member, Innocent Istifanus Moses, confirmed that GMAP graduates are typically taught to address colleagues, including senior executives, by their first names. In his view, the trainee’s mistake was not irredeemable, and he advised her to issue a brief, sincere apology. “Mistake–briefly acknowledge–correct it– move on confidently,” wrote one observer.

Accusations of Double Standard Emerge

The debate took a sharper turn when an old video resurfaced online, showing Mr. Elumelu in a 2022 interview with Chisom Obi-Okoye, an MBA student at Stanford Graduate School of Business in the United States. In that footage, the student interviewer addressed him as “Hi Tony” multiple times without any objection or correction from the businessman.

This discovery has led to widespread accusations of a double standard. Critics argue that Mr. Elumelu is willing to accept the casual, “Oyinbo” culture he decried when it suits him in an international setting but enforces a rigid traditional hierarchy at home. One Facebook user, Awuzie Frankline, questioned the inconsistency, stating, “Respect should be consistent not dependent on someone’s status, location or social class.”

Defense: ‘When in Rome, Behave Like The Romans’

In defense of the UBA Chairman, supporters have argued that there is no contradiction, as the two situations occurred in vastly different cultural contexts. They contend that Mr. Elumelu was simply adapting to the norms of his environment—behaving like the Romans while in Rome, as it were. In a formal corporate setting in Nigeria, they argue, it is appropriate to demand the traditional respect that is due to one’s elders and superiors. As one commentator put it, the issue is about “the need to adjust to culture and nuance as they come.”

Beyond the immediate controversy, the incident has opened a wider conversation about generational differences, the clash between traditional African values and Western corporate norms, and the importance of navigating social cues in professional environments.

Jide Akintunde, a social commentator, expressed surprise at Mr. Elumelu’s objection, noting that his first name has been central to his public and industry branding for years. He suggested that the public correction, while perhaps justified, could have been handled privately to avoid humiliating the young trainee.

As of Friday, the young woman at the center of the storm has not made a public statement. The video, however, continues to trend, serving as a potent reminder of the intricate and often unspoken rules that govern professional and social interactions in Nigeria.

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President Tinubu Suspends Three Perm Secs as ICPC Uncovers Another Fake Agency in SGF Office

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By Yusuf Danjuma Yunusa

President Bola Tinubu has ordered the immediate arrest of George Nwabueze over the alleged operation of a fake government agency within the premises of the office of the secretary to the government of the federation (OSGF).

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The president also ordered the immediate suspension of three permanent secretaries following fresh findings by the Independent Corrupt Practices and Other Related Offences Commission (ICPC) in its investigation into alleged fake government agencies and weaknesses in public service processes.

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