Except for a last minute U-turn, The Central Bank of Nigeria CBN, has fixed the maximum tenure of banks' managing directors at 10 years. It comprises a five-year tenure renewable only once for another five -year term.

The new tenure regime, which takes retroactive effect applies to all banks' managing directors who have spent up to 10 years.

CBN’s Director of Banking Supervision, Mr. Samuel Oni, who made the disclosure in a press briefing in Abuja, said: "This is actually done to enthrone good corporate governance in our banks, to institutionalise the arrangement of the appointment of CEOs in banks, to ensure to that banks put in place a good succession plan and programme and also, more importantly, to ensure that institutions are not personalised."

"Where a bank is a product of a major, acquisition, takeover or any other form of combination, the ten year period shall include the pre and post combination service years of the CEOs, provided that the bank in which he previously served as CEO was part of the new bank that emerged after the combination.

"Any person who has served as CEO for the maximum tenure in a bank shall not qualify for appointment in that bank or a subsidiary until after a period of three years of his exit as CEO.

"The Governors deputy governors of the Central Bank of Nigeria and Managing Director/CEOs and the Executive Directors of the Nigeria Deposit Insurance Corporation (NDIC), shall not be eligible for appointment for any capacity in banks and their subsidiaries under the supervision of CBN and NDIC until after the expiration of five years from the date of their exit from the CBN and the NDIC as the case may be."

"The department directors of CBN and that of the NDIC shall not be eligible for appointment in any capacity in banks and their subsidiaries under the supervision of the CBN and the NDIC until after the expiration of three years of their exit either from the CBN or the NDIC.

Going by this pronouncement, Messrs Jim Ovia, Tony Elumelu and Akinsola Akinfemiwa, the chief executive officers of Zenith Bank, UBA and Skye Bank, respectively, are expected to vacate office before the end of this year.

Findings revealed that Elumelu has been bank CEO since 1995. Also, Ovia has been at the helm of Zenith Bank since its inception in 1990. Also, Akinfemiwa moved over from the defunct Prudent Bank where he had been CEO since 2000 to Skye Bank.

Unlike in the past when the tenure of banks’ chief executives was not clearly defined, the apex bank has now said that bank top officers would now spend a maximum 10 years in office.
each managing director can now serve for maximum two terms of five years each.

Oni further stated that the CBN Governor, Sanusi Lamido Sanusi, communicated the latest development to the Chief Executive Officers at the Bankers Committee meeting held earlier in the week.