CBN RAISES BAR ON CORPORATE GOVERNANCE TO BOOST BUSINESS CONFIDENCE

President Bola Tinubu's inaugural speech on May 29 gave an indication of the economic direction his administration would take, and the Central Bank of Nigeria (CBN) swiftly adjusted to this new direction. 

The CBN floated the foreign exchange rate at the Import and Export (I&E) window, which has been praised by experts for bringing stability to the foreign exchange market. The CBN has also issued guidelines to enforce corporate governance and promote transparency in the banking sector. 

These guidelines aim to enhance investor confidence, protect stakeholders' interests, and ensure responsible and ethical operations by financial institutions. The CBN's directive requires prior approval and no objection from the CBN for any investor looking to acquire up to five percent of a bank in Nigeria. 

The regulation also restricts government ownership of banks to a maximum of ten percent, to be divested to private investors within five years. The CBN's move has been seen as a significant departure from the past and a positive step towards restoring confidence in the investment market. 

Former World Bank president, David Malpass, commended Tinubu's administration for unifying the exchange rate and taking steps to reduce corruption in the country.