2014-03-17 | BSD/DIR/GEN/LAB/07/009

Transmutation of Executive Directors to Non-Executive Directors of Deposit Money Banks

This letter addresses the strengthening of corporate governance practices in Nigerian banks. It highlights previous circulars that emphasized compliance with provisions relating to non-executive director and external auditor tenures. The letter also brings attention to recent developments that necessitate the need for a new guideline, requiring executive directors aspiring to take up non-executive directorship positions to serve a minimum "cooling-off" period of 3 years before doing so, regardless of existing contracts or Memorandum and Articles of Association. This is in line with global best practices and promotes the independence and objectivity required by good corporate governance principles.

Nigeria

Central Bank of Nigeria

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