On July 22, 2012, the Central Bank of Nigeria (CBN) identified the need for an international yet country specific standard for financial performance and in line with global standards, developed the Nigerian Sustainable Banking Principles (NSBP) which was approved by the Bankers Committee of Nigeria.
The NSBP was envisioned to enhance the success of financial institutions whilst also ensuring that they remain environmentally and socially responsible. Not only these, there was a strong hope in the Principles’ capacity to ‘clean up’ some areas in banking operations and ensure the sustainability of the sector, especially after the series of banking crises experienced in the country.
In 2017, we at ThistlePraxis began a research into the 5-year performance of the NSBP with the aid of respondents from key local and international stakeholder groups and organisations.
Today, January 23, 2018, we have published the report, which reviews the objectives of the NSBP vis à vis achievements within the five years of its adoption. Consequently, we also suggest feasible improvement strategies to ensure the sustained impact of The Principles on the Nigerian financial sector.
Ten (10) of the major findings reveal that:
- 88% of respondent banks have adopted the NSBP;
- 86% of respondents are satisfied with the role of the CBN in the adoption process;
- Principles Four (4) and Six (6) – Women Economic Empowerment and E&S Governance, respectively, have recorded the most success in implementation;
- Principles Two (2) and One (1) – Environmental and Social Footprint and Environmental and Social Risk Management, respectively, have proven most challenging to implement for respondent institutions;
- Lack of infrastructure and limited resources are the major challenges expressed by the institutions and expert bodies, as facing proper implementation;
- 86% of NSBP signatory banks have submitted at least one report to the CBN after their dates of adoption;
- 81% of respondents reported that the NSBP is relevant for their type of institution (commercial, microfinance or development finance);
- 80% of respondent banks have realised some form of benefits from their implementation of the NSBP and relevant investments;
- Only 33% of respondents are convinced that the current economic situation of the country has affected/affects their implementation of the NSBP, majorly in the form of reductions in budgetary allocation;
- 67% of respondent banks and the CBN Sustainable Banking Office disagree on the call for a review of the principles;
The full report is available on here
If you have any question, comment or enquiry on this report or wish to participate in a ‘Tweet Chat’ series to extensively discuss the outcomes and way forward, please contact Ifeoluwa on email@example.com / firstname.lastname@example.org or call 08066064767 / 07015183252.