Central Bank of Nigeria Extends Tenure of Bank Directors in Revised Guidelines

The Central Bank of Nigeria (CBN) has announced the revision of tenure limits for executive directors (ED), deputy managing directors (DMD), and managing directors (MD) of banks and bank holding companies.

As per the newly approved guidelines, the cumulative tenure limit for directors (ED, DMD, MD, and NEDs) serving on the board of the same bank has been increased to twenty-four (24) years, up from the previous limit of 20 years. These guidelines are outlined in Section 3 of the recently issued Corporate Governance Guidelines for Commercial, Merchant, Non-Interest, and Payment Service Banks in Nigeria.

The revised guidelines will take effect from August 1, 2023, and state that the tenure of the MD/CEO of a bank shall be determined by the terms of engagement with the bank, but it will not exceed a maximum period of twelve (12) years.

Furthermore, the guidelines specify that the tenure of a DMD or ED of a bank should not exceed twelve (12) years. These measures aim to ensure effective governance and encourage regular transitions of leadership within the banking sector.

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