The Central Bank of Nigeria (CBN) has reviewed the tenure of Executive Management and Non-Executive Directors of banks and other financial institutions.
This was contained in a communique issued by the apex bank’s Director of the Financial Regulation Department of Chibuzo Efobi.
CBN says the move is to strengthen governance practices in the banking sector.
“The tenure of Executive Directors (ED), Deputy Managing Directors (DMD), and Managing Directors (MDs) shall be in accordance with the terms of their engagement approved by the Board of Directors of banks, subject to a maximum tenure of ten (10) years,” the circular read.
The statement says for an Executive (ED) who becomes a DMD of a bank or any other DMB, his/her cumulative tenure as ED and DMD shall not exceed 10 years.
“Non-Executive Directors (NEDs), with the exception of Independent Non-Executive Director (INED), shall serve for a maximum period of twelve (12) years in a bank, broken into three terms of four years each. The statement reads..
writing by Adeniyi Bakare