Friday, the Central Bank of Nigeria (CBN) announced measures that will influence the term of bank and financial institution Executive Management and Non-Executive Directors.
The revised regulations outline the terms of service for Managing Directors, Deputy Managing Directors, and Executive Directors.
On Friday, the development was communicated in a circular.
The report stated: “The tenure of Executive Directors (ED), Deputy Managing Directors (DMD), and Managing Directors (MDs) will be according to the conditions of their employment approved by the Board of Directors of banks, with a maximum tenure of ten (10) years.
“The cumulative tenure of a DMD Executive who becomes the MD/CEO of a bank or any other DMB before the end of his/her maximum term shall not exceed twelve (12) years.
“However, the cumulative tenure of an Executive (ED) who becomes a DMD of a bank or any other DMB shall not exceed 10 years.
“Non-Executive Directors (NEDs), with the exception of Independent Non-Executive Directors (INEDs), shall serve for a maximum of twelve (12) years, divided into three terms of four years each, in a bank.
“EDs, DMDs, and MDs who leave the Board of a bank upon or before the expiration of their maximum term shall serve a one-year cooling-off period before being eligible for appointment as a NED to the Board of Directors.
“NEDs who leave the board of a bank upon or before the end of their maximum term of 12 years (3 terms of 4 years each) must serve a one-year cooling-off period before being eligible for appointment to the board of any other DMB.
Twenty years is the cumulative tenure restriction for EDs/DMDs, MDs, and NEDs in the banking business.
The circular further stated that the tenure requirements will go into effect on February 24, 2023.