The Central Bank of Nigeria (CBN) has ordered commercial banks to cut insider loans within six months or face regulatory sanctions. The directive, issued under the Banking and Other Financial Institutions Act (BOFIA) 2020, aims to curb excessive lending to directors, top shareholders, and affiliates.
Banks must now regularize all insider-related loans within the 180-day deadline and submit periodic reports on compliance. While top-tier banks may adjust easily, smaller lenders could struggle with restructuring.
Analysts say this move reinforces the CBN’s commitment to financial stability and governance reforms.
