Shareholders of banks and discount houses have kicked against the directives of the Central Bank of Nigeria that financial institutions with non-performing loans above 10 per cent will no longer be allowed to pay dividends to their shareholders.
Some of the stakeholders, who spoke with our correspondent, argued that it was wrong for the apex bank to utter such a policy statement and to suggest that investors should bear the brunt of the non-corporate governance practices of the institutions.
The Chairman, Ibadan Zone Shareholders Association of Nigeria, Mr. Eric Akinduro, admitted that though the apex bank gave the directive to curb the increase in non-performing loans and to stop further erosion of the capital base of the banks, asking them not to pay dividend was like preventing investors from earning returns on investments.