…bars two extended family members from serving as MD, CEO, executive directors
. Implementation of new regulation takes effect August 1
Central Bank of Nigeria has slashed the tenure of bank managing directors and chief executive officers to a maximum of 12 years.
This is contained in the newly approved corporate governance code issued by the CBN.
The apex bank disclosed this in a 96-page circular posted during the weekend on its website.
The circular signed by the Director, Financial Policy and Regulation Department, Chibuzo Efobi, stressed that only one member of an extended family can be CEO/MD/Chairman or Executive Director at any time.
CBN had earlier said bank executives could only serve a cumulative tenure of 20 years across the banking sector.
But the apex bank’s new regulation reduced the tenure of banks’ managing directors to a maximum of 12 years.
It has already fixed August 1, 2023, as the commencement date for implementing the new regulation.
“The board shall approve a succession plan for the MD/CEO, other EDs and senior management staff, which shall be reviewed at least once every two years,” the CBN circular partly read.