The Central Bank of Nigeria [CBN] has issued guidance notes on disclosure requirements to promote transparency and market discipline for Non-Interest Financial Institutions [NIFI] in Nigeria.
The guidance notes is also designed to regulate the financial institutions as well as ensure level playing ground for their customers.
In its introduction, CBN stated that the aim of the Guidance Notes is to achieve transparency and promote market discipline by allowing market participants, particularly the Investment Account Holders (IAHs), to access relevant, reliable and timely information on risk exposures and risk management policies and procedures of a NIFI. This document sets out the disclosure requirements with respect to procedure, frequency and content of information to be disclosed.
Concerning the organization and controls of NIFIs, the regulation states:
“NIFIs shall adopt suitable organizational arrangements to ensure the compliance with disclosure requirement under this Guidance Notes. Board and management shall independently assess and verify the quality of information. The solutions adopted shall form part of the NIFI’s system of internal controls.
“Within this framework, NIFIs shall establish appropriate specific procedures for verifying disclosures that yet to be subjected to verification by external auditors or the CBN,” it added.