The Central Bank of Nigeria (CBN) has revised the regulatory requirements for the tenure of Executive Management and Non-Executive Directors of Deposit Money Banks and Financial Holding Companies.

The move which is in the Code of Corporate Governance for Banks and Discount House is aimed at strengthening governance practices in the banking industry.

According to a notice from the CBN to all Deposits Money Banks, the tenure of Executive Directors (ED), Deputy Managing Directors (DMD) and Managing Directors (MDs) will be a maximum of 10 years.

Where an Executive who is a DMD becomes the MD/CEO of a bank or any other DMB before the end of his/her maximum tenure, the cumulative tenure of such executive shall not exceed 12 years.

However, for an Executive who becomes a DMD of a bank or any other DMB, his/her cumulative tenure as ED and DMD shall not exceed 10 years.

Again, EDs, DMDs and MDs who exit from the Board of a bank either upon or prior to the expiration of his/her maximum tenure, shall serve out a cooling-off period of one year before being eligible for appointment as a Non-Executive Director (NED) to the Board of Directors.

Also, NEDs who exit from the Board of a bank either upon or prior to the expiration of his/her maximum tenure of 12 years (three terms of four years each), shall serve out a cooling-off period of one year before being eligible for appointment to the Board of Directors of any other DMB.

Meanwhile, the cumulative tenure limit of EDs/DDs, MDs and NEDs across the banking industry is 20 years.