Freetown, 9th January 2026- The Sierra Leone Commercial Bank (SLCB) is facing renewed calls for tighter risk controls after the 2024 Auditor General’s Report revealed that the institution had issued loans totalling NLe356,579,171.71 without collateral as of 31st December 2024. The findings raise serious concerns about credit risk exposure and the bank’s internal safeguards in managing public and private funds.
According to the audit, the unsecured loans span six major categories, with the largest exposure found in ordinary loans, which accounted for NLe125,642,642.38 in collateral-free lending. This was followed by: Foreign loans: NLe107,500,000.00, Overdrafts: NLe67,676,150.25, Agricultural Credit Facility: NLe51,000,000.00, Amortised loans: NLe4,664,136.74 and Women’s Banking: NLe96,242.34.
The total principal amount across all loan categories stood at NLe857,582,201.34, meaning that over 41% of the bank’s loan portfolio was issued without collateral, a significant deviation from standard banking practice.
Auditors warned that the absence of adequate securities could expose the bank to heightened default risk, especially in volatile sectors such as agriculture and foreign lending. They recommended that the bank take immediate steps to secure the facilities granted, either through retroactive collateral arrangements or tighter future lending protocols.
“We recommended that the Bank obtain adequate securities for the facilities granted,” the report stated.
The findings come at a time when Sierra Leone’s financial sector is under pressure to improve transparency, reduce non-performing loans, and strengthen investor confidence. With SLCB being one of the country’s largest commercial banks, its lending practices have wide implications for credit stability and public trust.
Financial analysts say that while unsecured lending may be justified in certain cases, such as microfinance or strategic development initiatives, the scale and distribution of SLCB’s exposure demands urgent review.
As of now, the bank has not publicly responded to the audit findings. The Audit Service Sierra Leone is expected to follow up on compliance measures in its next review cycle.
