The Central Bank of Nigeria (CBN) has given a directive on the disposal of Non-Permissible Income (NPI) for Non-Interest Financial Institutions (NIFI).
This was disclosed by the CBN in a statement signed by the Director, Financial Policy and Regulation, Chibuzo Efobi, said the guidelines were issued as part of efforts to standardise the treatment and disposal of NPI by NIFI in the country.
The statement addressed to all Non-Interest Financial Institutions, said the NPI shall be put in a dedicated NPI account and shall not be mingled with the funds of non-interest banks.
It reads: “In line with the CBN Guidelines on Governance of Advisory Committees of Experts (ACE) 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 (NPI) 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 following guidelines are issued to guide the ACE of Non-Interest Banks (NIB) in supervising and monitoring the disposal of NPI by the institutions.
“NPI is not an object of ownership of the NIB and does not confer any ownership rights on it.
“The NPI shall be put in a dedicated NPI account and shall not be commingled with the funds of the NIB.
“The NIB is under obligation to dispose of any NPI that accrues to it.
“Disposing the NPI to a charitable cause is regarded as proper disposal of the NPI on the following conditions:
“The NIB does not stand to benefit from the charitable cause in any way, even if by goodwill.
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