CBN mandates DMBs on IFRS 9 Implementation
By NGOZI Onyeakusi
Ahead of the January 1, 2018 deadline for implementation of the International Financial Reporting Standard 9, the Central Bank of Nigeria (CBN) has charged Deposit Money Banks (DMBs) to comply with its implementation saying that IFRS 9 would not bring the desired benefits if it is not effectively implemented and applied consistently.
Giving the charge at at a breakfast roundtable organised by the Risk Managers Association of Nigeria (RIMAN) in collaboration with Olisa Agbakoba Legal Limited in Lagos, the Director, Banking Supervision, CBN, Ahmad Abdullahi, said all DMBs were expected to commence parallel run of a new loan impairment system from July 1, 2017 in order to ensure a seamless transition to IFRS 9 by January 1, 2018.
According to him, “We have less than six months to the effective date of the standard (IFRS 9) and many banks have to intensify efforts to meet the deadline”.
“The IFRS 9 would not bring the desired benefits if it is not effectively implemented and applied consistently; with less than six months to the effective date, all hands have to be on deck,” he added.
At the event, RIMAN inaugurated a work group on laws relating to credit and risk administration, non-performing loans and related issues in the nation’s financial system.
The work group, which was inaugurated by the President of RIMAN, Mr. Jude Monye, consists of RIMAN members from the financial services sector, CBN, Nigeria Deposit Insurance Corporation and lawyers.
According to Monye, the group is mandated, among other things, to facilitate, review, participate and promote initiatives towards strengthening the laws relating to credit administration, risk management and debt recovery in the country’s business environment and recommend necessary reforms.