Business
CBN Commended For Limiting Bank Auditor Tenure To 10 Years
Stakeholders in the banking sector have commended Central Bank of Nigeria for limiting the tenure of external auditors of banks to 10 years.
They told newsmen on Monday in Lagos that the directive would enhance transparency and accountability.
Mr Eddy Ademosu, President, Association of Corporate Affairs Managers of Banks, said that the action would enforce good corporate governance in the financial system.
Ademosu told newsmen that it was one of the steps that would enable the banking sector to function efficiently and meet international standards.
“It is a positive development since competency is needed among the auditors for an efficient job delivery,” he said.
Mr Moshood lsamotu, Head of Corporate Affairs Department, Afribank Nigeria Plc, said that the role of an external auditor in any organisation was unquantifiable.
Isamotu said that the Central Bank’s directive would further strengthen the banking sector and enhance the confidence of the public.
“For good corporate governance to be achieved in any organisation, a competent auditor is needed to ensure transparency in all transactions,” he said.
Mr Femi Adeniran, Head of Corporate Affairs Department, Guaranty Trust Bank, said that an external auditor was vital for the smooth operations of any organisation.
Adeniran said that Guaranty Trust Bank had complied with the directive since last year.
He added that it was not a new policy but it was recently reinforced in line with the provisions of Code of Corporate Governance for Banks.
Adeniran said that a competent auditor would reflect the true picture of the financial position of a bank so that people would know where to take their money.
Mr Nasiru Rahman, Head of Corporate Affairs Department, United Bank for Africa, said that it would make the comparison of banks easier for analysts, investors and rating agencies, thereby exposing the strength of every bank.
Rahman said that it would guide investors in taking decision since better understanding of every bank would have been known.
According to him, if the directive is strictly adhered to by financial institutions, meaningful growth and development will be achieved within the system in a short time.
Our correspondent reports that the CBN has given December 31 as the deadline for all banks to comply with the directive.
The aim is to uncover insider dealings and ensure transparency and accountability in the country’s financial system.
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