What does NSBP mean in BANKING

Nigerian Sustainable Banking Principles (NSBP) are an initiative of the Central Bank of Nigeria, designed to encourage sustainable practices within banks operating in the country. It sets out guidelines for responsible banking and financial services delivery, while encapsulating the concept of Environmental, Social and Governance (ESG), which has become increasingly important to both customers and regulators.

The purpose of the NSBP is to ensure that the banking sector in Nigeria contributes to a healthier environment and more equitable society by respecting environmental, social and governance principles. Through the NSBP, banks will be encouraged to pursue socially responsible activities that contribute to improved economic development and better outcomes for all stakeholders.

All licensed deposit money banks operating in Nigeria will be subject to an annual assessment on their compliance with standards set out in the NSBP.

Some examples of activities covered by NSBP include sustainability risk management strategy implementation, environmental impact assessments for projects, inclusion efforts within communities affected by bank operations or lending activities, commitment to anti-bribery and corruption initiatives. Additionally, efforts must be taken to reduce negative effects from climate change.

Banks should assess their compliance with NSBP on an annual basis so that any improvements can be made if necessary.

Yes. Non-compliance with any of the principles outlined in the guidelines will result in regulatory action taken against a bank such as monetary fines or corrective actions set out by one or more competent authorities as well as other enforcement measures provided under applicable laws & regulations.