Tenure Limits: Executives In Zenith, Others Resign

Following the latest directive of the Central Bank of Nigeria (CBN) which limits the tenure of executive directors, non-executive directors and deputy managing directors to 10 years, the deputy managing director of Zenith Bank has resigned her position alongside the executives of other banks.

This was contained in a statement issued by the bank to the investing public on the Nigeria Exchange Group on Thursday. According the statement issued by the company secretary of the bank Micheal Otu, the DMD of Zenith Bank, Dame Adaora Umeoji retired from the board of the bank effective February 24, 2023.

The CBN circular which was issued on February 24, 2023 and became effective immediately stipulates that“Where an Executive who is a DMD becomes the MD/CEO of a bank or any other DMB before the end of his/her maximum tenure, the cumulative tenure of such Executive shall not exceed 12 years.  However, for an Executive (ED) who becomes a DMD of a bank or any other DMB, his/her cumulative tenure as ED and DMD shall not exceed 10 years.

“Non-Executive Directors (NEDs), with the exception of Independent Non-Executive Director (INED), shall serve for a maximum period of 12 years in a bank, broken into three terms of four years each. EDs, DMDs and MDs who exit from the Board of a bank either upon or prior to the expiration of his/her maximum tenure, shall serve out a cooling-off period of one year before being eligible for appointment as a NED to the Board of Directors.

“NEDs who exit from the Board of a bank either upon or prior to the expiration of his/her maximum tenure of 12 years (three terms of four years each), shall serve out a cooling-off period of one year before being eligible for appointment to the Board of Directors of any other DMB. The cumulative tenure limit of EDs/DMDs, MDs and NEDs across the banking industry is 20 years.”

Likewise, the Infinity Trust Mortgage Bank announced the retirement of Abubakar Muhammad who was an independent director at the bank. According to the board of the bank, his retirement is in line with the CBN directive and he is being replaced by Dr Olufemi Fabanwo.

Meanwhile, Ecobank Transnational Incorporated the parent company of the Ecobank Group, has announced the official assumption of Jeremy Awori as Chief Executive Officer of the Ecobank Group, effective 1 March 2023.

Commenting, Ecobank Group Chairman, Alain Nkontchou, noted that “Awori’s exceptional and proven qualities as a result-oriented effective leader with an extensive knowledge of the African banking landscape, make him the ideal choice to steer the growth of the Ecobank Group through the current era of rapid global and continental changes.”

On his part,Awori,  said “It’s a fantastic opportunity to take Ecobank to the next level of its growth strategy. Despite current global challenges, Africa offers promising prospects. Ecobank is uniquely positioned to provide systematic change across the banking sector at a pan-African level, using the geographic footprint it has already established.

“Through our single gateway platform, we are well-positioned to provide the necessary financial products and solutions for countries, corporates, and SMEs to capitalize on the continent’s vast resource, trade and investment opportunities. We also provide relevant, accessible, and affordable financial services that address the evolving needs of a vibrant, youthful, and entrepreneurial continent. Ecobank’s brand and heritage, continue to be a source of pride.”