Overview
In 2014, the Central Bank of Nigeria (CBN) released the Code of Corporate Governance for Banks and Discount Houses. The Code set out guidelines to strengthen governance practices across the sector. It addressed board composition, shareholder and stakeholder rights, annual report disclosures, risk management, ethics and professionalism, and conflict of interest.
On February 24, 2023, the CBN issued a circular titled "Review of Tenure of Executive Management and Non-Executive Directors of Deposit Money Banks in Nigeria." The circular revised the tenure requirements previously set out in the 2014 Code, as part of measures to strengthen governance in the banking industry.
This paper discusses the amendments introduced by the circular and the legal implications for current directors in the Nigerian banking industry.
