Stakeholders React to Mass Exit of Bank Executives Under New CBN Policy

BY SAM DIALA

Shareholders of Nigeria’s quoted companies and industry experts have reacted to the recent policy by the Central Bank of Nigeria (CBN) on a new tenure limit for banks’ executive management and non-executive directors which unseat prominent industry players.

The apex bank had on February 24, 2023 issued a circular specifying the tenure of Managing Directors (MDs), Deputy Managing Directors (DMDs), Executive Directors (EDs) and Non-Executive Directors (NEDs) of banks and financial institutions, a development that jolted the topmost leadership echelon of the financial services industry.

The guidelines, among other conditions, stipulate that the tenure of EDs, DMDs and MDs shall be in accordance with the terms of their engagement approved by the Board of Directors of the banks, subject to a maximum tenure of ten (10) years.

The policy also prescribed that 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 twelve (12) years.

The CBN has explained that HoldCo Chief Executives are not affected by the new tenure guideline.

Reacting to the matter, National Coordinator, Independent Shareholders Association of Nigeria (ISAN), Prince Anthony Omojola, commended the CBN for the new policy which

First Commercial Flight Lands in Ogun Cargo Airport

BY ANTHONY AWUNOR

There was excitement in Ogun State on Friday as the state recorded a remarkable feat, with the first commercial flight landing at the Gateway Agro Cargo International Airport along Iperu-Ilishan road in Ikenne Local Government Area of the State. With the development, aviation experts are of the view that the new airport will definitely shore up the economic fortunes of the state.

The first private aircraft landed at 2.15 pm to the excitement of the Ogun people who had earlier trooped to the airport to

Continues on page 33 he described as a welcome development as it would create room for the younger ones to climb the leadership ladder. He however called for a seamless implementation of the rule to avoid creating challenges in the industry.

“It is a welcome development. Those who have served at the top, with their deputies, for a long period, ought to retire to give room to the younger ones. However, we need to manage the process effectively so that we do not lose experienced hands in the financial services circle,” Omojola said in a note to THEWILL, expressing optimism that the policy would introduce prudence practice and eliminate what he called the culture bad behaviour among the managers.

The National President, Progressive Shareholders Association of Nigeria (PSAN), Mr Boniface Okezie, urged the CBN to rescind the policy. He noted that some of the banks are owner-managed and the apex bank ought not to interfere in the leadership succession process of the institutions. Okezie expressed the concern that the policy could be counter-productive by “killing business” of the industry. The shareholders’ group leader is worried that the new regulation could rob the industry of competent and experienced hands. Okezie said, “As a stakeholder, I would advise the CBN to jettison the policy because it amounts to interfering with the management of owner-manager financial services institutions who have their own succession plans and

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MORE INSIDE

Ibe Kachikwu Appointed Visiting Professor of Law by UNIBEN, Baze Vasity, Others

FG Set to Share N145bn Cabotage Fund

– After 17 Years of Waiting

Indigenous ship-owners in Nigeria are set to receive the first disbursement of the Cabotage Vessels Finance Fund (CVFF) from Primary Lending Institutions (PLIs) expected kick off in March 2023.

Experts Speak on Inequality, Gender-Based Violence at Ford Foundation Platform

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The PLIs United Bank of Africa (UBA), Zenith Bank, Union Bank, Jaiz Bank and Polaris Bank.

The CVFF is an intervention fund created by the federal government to develop

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