BY KENNETH EZE
As part of efforts to standardise the treatment and disposal of non-permissible income by the non-interest financial institutions in Nigeria, the Central Bank of Nigeria has issued guidelines on disposal of non-permissible income.
A statement from the apex bank read that the guidelines were accessible from the CBN’s website and that all non-interest financial institutions were required to comply because non-compliance would attract sanctions.
It added that October 13, 2021 is the effective date of the guidelines.
It stated, “In line with the CBN guidelines on governance of Advisory Committees of Experts for institutions offering non-interest financial services, it is part of the duties and responsibilities of the ACE to supervise and monitor the disposal of Non-Permissible Income by the institution.
“Non-Permissible Income is any income that accrues to the institution in a Shari’ah non-compliant manner, such as interest income, penalties for delayed payment of debt obligations, or any income declared by the ACE of the institution as impermissible according to the Shari’ah.”
The apex bank mandated “the ACE of non-interest banks in supervising and monitoring the disposal of NPI by the institutions.”
From the guidelines, NPI does not belong to the NIBs and should be “put in a dedicated NPI account and shall not be commingled with the funds of the NIB.”
It made it obligatory for NIBs to dispose of “any NPI that accrues to it,” and added that disposing same to “a charitable cause is regarded as proper disposal,” so long as it is carried out in keeping with the guidelines.
It also set out the format for disposal of the NPI which could be done directly or through a third party with the NIBs instructed to ensure that they do not appropriate any goodwill from whosoever might have benefitted from the NPI.
