The Central Bank of Nigeria (CBN) reviewed the terms of the Managing Directors, Deputy Managing Directors (DMDs), and Executive Directors of Deposit Money Banks (DMBs) and other financial institutions on Friday in an effort to promote governance procedures in the banking sector.
The new rules outline the term of Managing Directors, Deputy Managing Directors, and Executive Directors in a circular and signed by Chibuzo Efobi, Director, Financial Policy and Regulation Department.
“Executive Directors’ (EDs’), Deputy Managing Directors’ (DMDs’), and Managing Directors’ (MDs’) terms of engagement must be approved by the Board of Directors of banks, with a 10-year maximum term limit.
Additionally, according to the apex bank, non-executive directors (NEDS), with ated that Non-Executive Directors (NEDS), with the exception of Independent Non- Executive Director (INED), shall serve for a maximum period of 12 years in a bank, broken into three terms of four years each. “The cumulative tenure limit of EDS/DMDs, MDS and NEDs across the banking Industry is 20 years”, the statement added.