FG considers 3-yr tenure for bank MDs – Gets tough on bank debtors – Tribune
November 2, 2009 by Bunmi Awolusi
Following the alleged flagrant disregard for banking ethics among some bank chief executives, the Federal Government is considering having a fixed tenure for the managing directors/chief executive officers of banks. The Nigerian Tribune learnt that the proposal to this effect is being giving a serious prolong consideration by the regulatory authorities in the financial market.
According to the source, the Federal Government, piqued by the way some bank chief executives turned themselves into traditional rulers with no fixed tenure of stewardship, has decided to fix the tenure of bank chief executives to three or four years, in conjunction with the Central Bank of Nigeria (CBN) and the Nigeria Deposit Insurance Corporation (NDIC).
Confirming the ongoing move to have a fixed tenure for the bank bosses, the Managing Director/Chief Executive Officer of NDIC, Alhaji Ganiyu Adewale Ogunleye, disclosed that there were many corporate governance issues to be addressed in order to restore sanity in the embattled banking sector. He said the regulatory authorities had observed that some banks had no contractual agreements on the tenure of their CEOs.
