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.
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.
“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.
