Lagos, Feb. 25, 2023 -The Central Bank of Nigeria (CBN) has revised the regulatory requirements for tenures of executive management and non-executive directors of banks in the country.
According to a circular, dated Feb. 24, 2023, CBN has prescribed the tenure of executive directors, deputy managing directors and managing directors should, subject to the terms of their engagement by the board of directors, subject to a maximum of 10 years.
It said where an executive, who is a deputy managing director, becomes the managing director/CEO of a bank before the end of his or her maximum tenure, the cumulative tenure of such executive shall not exceed 12 years
However, for an Executive (ED) who becomes a Deputy Managing Director (DMD) of a bank or any other DMB, his or her cumulative tenure as ED and DMD shall not exceed 10 years.
The apex bank said a non-executive director, with the exception of independent Non-Executive Director (NED), shall serve for a maximum period of 12 years in a bank, broken into three terms of four years each.
“Executive Directors, Deputy Managing Directors and Managing Directors who exit from the board of a bank either upon or prior to the expiration of his or her tenure, shall serve out a cooling-off period of one year before being eligible for appointment to the board of directors of another bank.
“The cumulative tenure limit of Executive directors, deputy managing directors, managing directors and non-executive directors across the banking industry is 20 years,” it said. (GBN)
