CBN revises tenure limits for bank executives

The Central Bank of Nigeria, CBN, has revised the tenure of executive directors (ED). Deputy managing directors (DMD), and managing directors (MDs) of Banks and Bank Holding companies.

According to the approved guidelines, the cumulative tenure limit of directors (ED, DMD, MD, and NEDs) on the Board of the same bank is twenty-four (24) years. It was 20 years in the previous regulation.

This is contained in section 3 of the new Corporate Governance Guidelines for Commercial, Merchant, Non-Interest, and Payment Service Banks in Nigeria.

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The current guidelines which were issued as a circular take effect August 1, 2023.

According to Section 3 of the guidelines the tenure of the MD/CEO of a bank shall be in accordance with the terms of engagement with the bank but subject to a maximum period of twelve (12) years.

The guidelines also provide for the tenure of the Deputy Managing Director (DMD) and Executive Director (ED).

It also stated that the tenure of a DMD/ED of a bank shall not exceed a period of twelve (12) years.