The Central Bank of Nigeria (CBN) has approved a new corporate governance code stating that the tenure of a bank’s managing director or chief executive officer (CEO) can only last 12 years.
The country’s apex bank disclosed this in a 96-page circular posted during the weekend on its website.
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According to the circular signed by Chibuzo Efobi, the financial policy and regulation department director emphasised that only one member of an extended family can be CEO/MD/Chairman or Executive Director at any time.
Recall that CBN had said bank executives could only serve a cumulative tenure of 20 years across the banking sector.
However, CBN’s new regulation slashed the tenure of banks’ managing directors to a maximum of 12 years.
CBM fixed August 1, 2023, as the commencement date for implementing the new regulation.
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“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 circular reads in part.
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