By PETER EGWUATU

The Central Bank of Nigeria (CBN) has given banks operating in the country up to September 2013 to commence implementation of Nigerian Sustainable Banking Principles (NSBP) .

The CBN said that it will give incentives to banks who adopt the sustainable banking principles while those who did not will be panalised accordingly.

In his remark at the Risk Managers Association of Nigeria (RIMAN) Quarterly Roundtable Meeting held on Tuesday in Lagos, Special Adviser to the CBN Governor, Folakemi Fatogbe , who was represented by  Mr Joseph Angaye commends RIMAN for organizing the lecture on NSBP for banks. The CBN attaches great importance to this principles and would want the banks to learn and adopt the principles.

Banks that have not adopted the NSBP now should quickly do so as the apex bank will give incentives to banks that have complied and those who did not comply will be panalised.”

The Guest Speaker at the RIMAN Quarterly Meeting, Carey Bohjanem, encouraged banks to take environmental issues seriously in considering their risk management. According to her, Nigerian banks that are yet to implement the banking principles should collaborate with those that have implemented theirs and seek ways to assess and manage the environmental and social risks associated with such investment activities.”

She noted that banks in Nigeria through the Banker’s Committee were given the task of developing principles to guide the management of Environmental and Social Risks inherent in financing.

According to her, The committee came up with what is now known as the “The Nigerian Sustainable Banking Principles” to drive long-term sustainable growth whilst focusing on development priorities, safeguarding the environment and our people, and delivering measurable benefits to society and the real economy.”

It will be recalled that the CBN recently issued a circular on banks intimating them on the banking principles adopted in July 2012.

The principles consist of nine over-arching Principles such as : Managing environmental and Social risk in business decisions; Managing the bank’s own environment and social footprint; Safeguarding human rights; Promoting women’s economic participation /empowerment ; Promoting financial inclusion of communities and groups with limited or no access to the formal financial sector; Meeting the imperatives for good governance, transparency and accountability; Supporting capacity building in the sector; Promoting Collaborative partnership to accelerate sector progress and Reporting to take stock of sector progress and attendant needs.