Section 17: Disclosure of Interest by Directors, Managers and Officers.

(1) A manager or any other officer of a bank shall not-
(a) in any manner whatsoever, whether directly or indirectly, have personal interest in any advance, loan or credit facility, and if the manager or officer has any such personal interest, such manager or officer shall declare the nature of such interest to the bank; or
(b) grant any advance, loan or credit facility to any person, unless it is authorised in accordance with the rules and regulations of the bank and in line with the regulations on collateralisation issued by the Bank.
(2) Any manager or officer who contravenes or fails to comply with any of the provisions of subsection (1), commits an offence and is liable on conviction to imprisonment for a term of not less than three years or a fine of not less than N5,000,000 or both, and any gain or benefit accruing to any person convicted under this section, by reason of such contravention, is forfeited to and vested in the bank.
(3) A director of a bank who is in any way, whether directly or indirectly, interested in the grant of an advance, loan or credit facility by the bank, shall declare the nature of such interest before the meeting of the board of directors of the bank, at which the request for the advance, loan or credit facility is first taken into consideration.
(4) Where the director becomes interested in any advance, loan or credit facility after it is granted, the declaration shall be made to the board of directors immediately.
(5) For the purpose of this section, a general notice given to the board of directors of a bank by a director to the effect that such director is a member of a company or firm seeking an advance, loan or credit facility from the bank shall be regarded as a declaration of his interest in the grant of the advance, loan or credit facility which may, after the date of the notice, be granted to that company or firm, and is deemed to be a sufficient declaration of interest in relation to any such advance, loan or credit facility so granted:
Provided that the notice shall not have effect unless it is in writing and given at a meeting of the board of directors of the bank which shall be required to do all things reasonably necessary to ensure that it is brought up and read at the next meeting of the board of directors of the bank after it is so given.
(6) A director of a bank who is in any way, whether directly or indirectly, interested in the grant of an advance, loan or credit facility with a bank other than the bank in which such person is a director, shall declare the nature of such interest in writing to the Bank prior to the grant of the advance, loan or credit facility by that other bank and in a case where the director becomes interested in any advance, loan or credit facility from another bank after it is granted, the declaration shall be made to the Bank immediately.
(7) Subsections (3) and (6) do not apply in any case-
(a) where the interest of the director consists only of being a person holding less than 5% of the shares of the company which is seeking an advance, loan or credit facility from the bank, or such percentage as the Bank may prescribe; or
(b) if the interest of the director may properly be regarded by the Bank as immaterial.
(8) For the purpose of subsection (5), a general notice given to the board of directors of a bank by a director is deemed to be a sufficient declaration of interest in relation to any advance, loan or credit facility, if-
(a) the notice specifies the nature and extent of interest in the company or firm;
(b) the interest is not different in nature from or greater in extent than the nature and extent specified in the notice at the time any advance, loan or credit facility is made; and
(c) the notice is given prior to the meeting of the board of directors of the bank.
(9) Every director of a bank who holds any office or possesses any property, whether directly or indirectly, or who by reason of holding such office or possessing such property, or otherwise has duties or interests which might conflict with such director's duties or interests as a director of a bank, shall declare, before a meeting of the board of directors of the bank, the fact and the nature, character and extent of the duties or interests.
(10) The declaration referred to in subsection (9) is required to be made at the first meeting of the board of directors of the bank held-
(a) after such person becomes a director of the bank; or
(b) if already a director, after such person takes office or came into possession of the property.
(11) The secretary of the board of the bank shall-
(a) cause to be brought up and read any declaration made under subsection (3), (8) or (9) at the next meeting of the board of directors of the bank after it is made; and
(b) record any declaration made under this section in the minutes of the meeting at which it was made or at the meeting at which it was brought up and read.
(12) A director who contravenes subsection (3), (6) or (9), commits an offence and is liable on conviction to a fine of not less than N5,000,000 or imprisonment for a term of three years or both.