The Central Bank of Nigeria (CBN) has increased the tenure of the Managing Directors/Chief Executives of banks to a maximum of 12 years from 10 years.
CBN, in a circular on the new, “Corporate Governance Guidelines for Commercial, Merchant, Non-interest and Payment Service Banks in Nigeria.” dated July 13, 2023, signed by CBN Director, Financial Policy and Regulation Department, Chibuzo Efobi, and addressed to commercial, merchant, non-interest, Payment Service Banks and Financial Holding Companies (FHCs), also increased the tenure of Deputy Managing Directors (DMD/Executive Directors (ED) of a banks to a maximum period of 12 years.
The CBN stated that the objectives of the guidelines are to among other things provide additional guidance on the principles, recommended practices, and responsibilities contained in NCCG 2018; outline industry-specific corporate governance standards for banks; and promote high ethical standards amongst operators, while enhancing public confidence.