Nigeria imposes tenure limit on bank CEOs

From FT reporter Tom Burgis:

Two of Nigeria’s most prominent bank chief executives are to be forced to stand down under new rules introduced by the central bank as part of the governor’s ongoing tussle with some of the country’s most powerful tycoons.

Lamido Sanusi, who took over as governor in June, has already rocked the financial sector in Africa’s second largest economy, dismissing the executivesof eight banks during a debt crisis brought on by reckless lending. The central bank bailed out stricken banks to the tune of $4bn.

In the latest move, the country’s 24 banks have been instructed to place a 10-year limit on the tenures of chief executives. “All CEOs who would have served for 10 years by July 31 2010 shall cease to function in that capacity and shall hand over to their successors,” the central bank said.

The purpose of the new rules was to address “corporate governance issues”, the bank said.

Full story.

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