Sanusi Ousts Ovia, Elumelu, Akinfemiwa

The governor of Central Bank of Nigeria (CBN), Mallam Sanusi Lamido Sanusi, on Monday made good his threat to wrest banks from proprietors as the board of the banking regulator has pegged the maximum tenure of commercial banks’ managing directors/chief executives at 10 years.

Those who have already spent 10 years or more are to quit by July 2010 – meaning the Managing Director, Zenith Bank Plc, Mr. Jim Ovia, Managing Director, United Bank for Africa Plc, Mr. Tony Elumelu, and his counterpart at Skye Bank Plc, Mr. Akinsola Akinfemiwa, will have to relinquish their positions soon. They have spent between 11 and 19 years as chief executives of their respective banks.

Addressing newsmen on the latest development, CBN’s Director of Bank Supervision, Mr. Sam Oni, explained that the policy was designed to enthrone good corporate governance in the banking sector and institutionalise the arrangement of appointment of CEOs in banks.

He pointed out that the policy guideline was geared towards ensuring that banks put in place a good succession plan and avoiding the personalisation of institutions.

He said that even after the bank chief executive that has served a 10-year tenure must have left, he could only take up an appointment with the bank or any of its subsidiaries only after three years of his exit.

“Chief executive officers of banks shall henceforth serve a maximum of 10 years; All CEOs that would have served for 10 years by July 2010 shall cease to function in that capacity and shall hand over to their successors; Where a bank is a product of a merger, acquisition or takeover or any other form of combination, the 10 years shall include the pre and post combination service years of a CEO, provided the bank, which he served as a CEO was part of the new banks that emerged after the combination; Any person that has served as CEO for the maximum tenure in a bank shall not qualify for an appointment in that bank or its subsidiary until after a period of three years of his exit as CEOs,” he said.

Oni said given the new policy, affected bank chief executives are to draw up their succession plan towards their exit and institute a credible succession programme that would be approved by the board. Such, he added, would also be supervised and monitored by the CBN.

He said: “By July 31, 2010, the affected chief executives are to prepare a succession as approved by their board and to have a credible succession programme that will be monitored by the board and therefore subjected to some kind of supervision and monitoring by the CBN.”

Furthermore, he said: “All banks shall reflect the provisions of this guideline in the terms of engagement of their CEOs.
“In terms of the appointment of the CEOs of banks, the condition and terms under which they are appointed and approved by the board must also be ratified and approved at the Annual General Meeting. Such terms of appointment in the first instance shall not exceed five years and of course it’s renewable for another term provided that the period of service cumulative does not exceed 10 years.”

It has also emerged from the new policy of the banking watchdog that the CBN governor, his deputies as well as managing director/chief executives of the Nigeria Deposit Insurance Corporation (NDIC) could be appointed into a bank or any of its subsidiaries, only five years after his exit from respective positions in CBN and NDIC.

Oni said: “The governor, deputy governors of the CBN and the managing director/CEO and the executive director of NDIC, shall not be eligible for appointment in any capacity in banks and their subsidiaries under the supervision of the CBN and NDIC until after the expiration of five years from the date of their exit from the CBN or NDIC as the case may be.”

Similarly, he said: “The departmental directors of the 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 NDIC until after the expiration of three years from the date of their exit from either the CBN or NDIC.”

Earlier, during the briefing on the outcome of the Bankers’ Committee, Oni disclosed that the CBN had last Monday rolled out the minimum information disclosure for banks for the preparation of their account beginning with 2009 financial year.
This, he said, was with the view to ensuring that the banking system is effectively supervised.
According to him, the CBN had left the negotiation and sales/recapitalisation of the eight rescued banks to the banks’ management and boards.

He said following the meeting held with the management and key shareholders of the rescued banks last week, it was unanimously agreed that the apex bank should allow the boards and management of the affected banks to negotiate the sales/recapitalisation of their institutions.

Stressing that the CBN would only be a facilitator in the whole process, Oni recalled that the apex bank had appointed financial advisors for the rescued banks to commence the process of their recapitalisation.

The Bankers’ Committee comprising banks’ and other financial institutions managing directors and key CBN officials he also said, resolved that starting this financial year, the commercial banks would commence a longer tenure lending as part of efforts to assist the Federal and state governments in the resuscitation of infrastructure, which continues to pose a major challenge to Nigeria’s quest for development.

The Committee, he said, had therefore identified areas where banks would intervene to include small and medium enterprises (SMEs), power and agriculture.

Managing Director/Chief Executive of Access Bank Plc, Mr. Aigboje Aig-Imokhuede, who spoke alongside his counterparts at FinBank, Mrs. Susan Iroche; Standard-IBTCBank; Chris Newson; and Kakawa Discount House Limited, Mr. Laoye Jaiyeola, disclosed that arrangements on the financing model had been finalised .

He said the committee would meet and consult with agencies of the Federal Government and State Governments on ways to remove bottlenecks associated with projects and make them bankable.

Aig-Imokhuede said banks would this year embark on the development of bond instrument from where financial resources for longer credit facility for the infrastructure and real sector resuscitation would be realised.
This, he said, would enablethe banks to make longer tenure lending from seven to 20 years.

http://www.thisdayonline.com/nview.php?id=164630

And so effing what?
Zenith, UBA & Skye Banks are solid banks therefore a change of CEO will not in anyway affect the fortune of the banks.

I am beginning to like the ideology of this Sanusi,  I wish this could be done to the imbeciles called politicians as well,
It has always been my style. Live and let others live. No one person is that too superior to be there at the top all the time,
The era of the animal farm [, but some are more equal than others] has gone.

Go sanusi go,  I support you more than the Super Eagles.

MAITEMA:

And so effing what?
Zenith, UBA & Skye Banks are solid banks therefore a change of CEO will not in anyway affect the fortune of the banks.

You are right

Wonderful. Sanity is returning to our banking institutions. The era of sit tightism is over. There will be creation of opportunities for professionals to aspire to the pinnacle of the banking career.

People can now aspire to be the CEO of their banks or other banks rather being limited because an individual has turned himself or herself into a monarchy.

Kudos CBN and NDIC for this new policy.

this seems like a very good idea!

P.S.
i'm waiting for people to come and introduce a tribal agenda here o,

Mr Akinfemiwa is an experienced banker who has used is wealth of experience to move Skye Bank from no where to one of the biggest bank in nigeria .kudos to him

Should be interesting to see who takes over from Elumelu and Ovia. I am more interested in the Elumelu case. Wonder if Chika Mordi is still in that bank, he has always struck me as in the prince in waiting for the UBA throne.

I hope this will not instill a sense of urgency on these CEOs to embezzle as much as they can before their tenure runs out. Imagine what Ibru and Akingbola did even when they never imagine that they will be ousted from office.That means they would have literarily sold the banks if they were given a marked tenure to stay.

I am waiting to see who takes over from Ovia and Elumelu. They built a cult-like image around themselves. Unfortunately for them, they do not have their kids in the system like Otunba Subomi Balogun. UBA might not have much of a crises, if Kingdom Holdings (a subsidiary owned by a Saudi prince) still has the shares being voted by Elumelu, then they will quickly get a replacement. Recall how Keem Belo Osagie quickly transferred the shares to Elumelu in 2003/4, its the handwork of the Saudi prince.

We'll watch and see.

Its a good move and will help us get rid of this our 'I go die for office' mentality. It was a similar move that saved us from the 'permanent' secretary malaise.

well dats okay

Well,it never stops to amaze me the way Nigerians think.I think our problem could be traced to poverty and  poor education.Nigerians attach sentiments to most political and financial issues.Don't get offended guys.But i shall explain.Some people here are comparing Bank CEOs to politicians in terms of 'sitting tight'.What a shame.
Well,banks are private companies guys.It is a privately owned company hence CEOs should be determined by shareholders' votes.As a matter of fact,i expect the banks to challenge this in court.This is dictatorial in nature.CBN should not dictate to the shareholders how long they intend to keep a CEO.As a private company,Zenith bank is similar to Dangote Group PLC.Most of those guys who are CEOs are the majority shareholders in the banks.Removing them with this new CBN regulation is similar to asking Dangote to quit as Chairman of Dangote Group.Because both of them are private companies and not government run companies.Reason this critically before you comment.This new CBN law is a shame.It means that  Jim Ovia cannot be appointed  as CEO of another bank(by shareholders' vote) just because he has served 10 years at Zenith.Ovia has lots of experience in the banking industry.In developed countries people like him are well sought after.A bank that needs his experience should be free to appoint anybody as their CEO.You must not have been a staff of a bank to be appointed as CEO guys.The current CEO of Citi Group was never a staff of Citi Group.This is a draconian law from CBN.There is nothing ethically wrong with a family  run bank.We need sound bank policies and regulation Sanusi.This will have no positive effect   on the banking industry.

Clever move

chuckvyl:

Well,it never stops to amaze me the way Nigerians think.I think our problem could be traced to poverty and  poor education.Nigerians attach sentiments to most political and financial issues.Don't get offended guys.But i shall explain.Some people here are comparing Bank CEOs to politicians in terms of 'sitting tight'.What a shame.
Well,banks are private companies guys.It is a privately owned company hence CEOs should be determined by shareholders' votes.As a matter of fact,i expect the banks to challenge this in court.This is dictatorial in nature.CBN should not dictate to the shareholders how long they intend to keep a CEO.As a private company,Zenith bank is similar to Dangote Group PLC.Most of those guys who are CEOs are the majority shareholders in the banks.Removing them with this new CBN regulation is similar to asking Dangote to quit as Chairman of Dangote Group.Because both of them are private companies and not government run companies.Reason this critically before you comment.This new CBN law is a shame.It means that  Jim Ovia cannot be appointed  as CEO of another bank(by shareholders' vote) just because he has served 10 years at Zenith.Ovia has lots of experience in the banking industry.In developed countries people like him are well sought after.A bank that needs his experience should be free to appoint anybody as their CEO.You must not have been a staff of a bank to be appointed as CEO guys.The current CEO of Citi Group was never a staff of Citi Group.This is a draconian law from CBN.There is nothing ethically wrong with a family  run bank.We need sound bank policies and regulation Sanusi.This will have no positive effect   on the banking industry.

you have spoken well brother, however i must disagree with you on certain issues regarding industry regulations. Firstly, the analogy you used sorts of falls out place, Dangote group of companies is not in the same industry as the banks who trade primarily with public funds, however If the Manufacturers Association of Nigeria (MAN) deem Dangote to have contravened their set rules and by so doing his continued stay as CEO would not be in the best interest of the public he can be asked to leave.
The banks are of course more indebted to the public than Dangote's enterprises so ts wont the focus be on them!

chuckvyl:

Well,it never stops to amaze me the way Nigerians think.I think our problem could be traced to poverty and  poor education.Nigerians attach sentiments to most political and financial issues.Don't get offended guys.But i shall explain.Some people here are comparing Bank CEOs to politicians in terms of 'sitting tight'.What a shame.
Well,banks are private companies guys.It is a privately owned company hence CEOs should be determined by shareholders' votes.As a matter of fact,i expect the banks to challenge this in court.This is dictatorial in nature.CBN should not dictate to the shareholders how long they intend to keep a CEO.As a private company,Zenith bank is similar to Dangote Group PLC.Most of those guys who are CEOs are the majority shareholders in the banks.Removing them with this new CBN regulation is similar to asking Dangote to quit as Chairman of Dangote Group.Because both of them are private companies and not government run companies.Reason this critically before you comment.This new CBN law is a shame.It means that  Jim Ovia cannot be appointed  as CEO of another bank(by shareholders' vote) just because he has served 10 years at Zenith.Ovia has lots of experience in the banking industry.In developed countries people like him are well sought after.A bank that needs his experience should be free to appoint anybody as their CEO.You must not have been a staff of a bank to be appointed as CEO guys.The current CEO of Citi Group was never a staff of Citi Group.This is a draconian law from CBN.There is nothing ethically wrong with a family  run bank.We need sound bank policies and regulation Sanusi.This will have no positive effect   on the banking industry.

All the people shouting kudos just don't understand the social engineering Sanusi wants to bring to Nigerian banks and fnancial system in general. All of a sudden, it has become a crime to be rich in Nigeria? Persons or families are forbidden by Sanusi's socialist interpretations of our laws from owing banks, even the ones they built from the scratch!
There's no need to set a limit on bank CEOs, their tenure should be determined by the shareholders' interests and ability to work hard, make profit, and move the industry forward. What's next in Sanusi's arsenal of regulations? Limits on how much each person ought to have in his bank account? The downward slide of our financal sector continues

netotse:


P.S.
i'm waiting for people to come and introduce a tribal agenda here o,

Step 1.Recapitalise ailing banks and replace the CEO and BOD, except Unitybank.

step 2.CEO of over 10yrs standing should be removed. Again,Unitybank CEO jump am. cos he hasnt lasted that long
Lets see whats coming next.

chuckvyl:

Well,it never stops to amaze me the way Nigerians think.I think our problem could be traced to poverty and  poor education.Nigerians attach sentiments to most political and financial issues.Don't get offended guys.But i shall explain.Some people here are comparing Bank CEOs to politicians in terms of 'sitting tight'.What a shame.
Well,banks are private companies guys.It is a privately owned company hence CEOs should be determined by shareholders' votes.As a matter of fact,i expect the banks to challenge this in court.This is dictatorial in nature.CBN should not dictate to the shareholders how long they intend to keep a CEO.As a private company,Zenith bank is similar to Dangote Group PLC.Most of those guys who are CEOs are the majority shareholders in the banks.Removing them with this new CBN regulation is similar to asking Dangote to quit as Chairman of Dangote Group.Because both of them are private companies and not government run companies.Reason this critically before you comment.This new CBN law is a shame.It means that  Jim Ovia cannot be appointed  as CEO of another bank(by shareholders' vote) just because he has served 10 years at Zenith.Ovia has lots of experience in the banking industry.In developed countries people like him are well sought after.A bank that needs his experience should be free to appoint anybody as their CEO.You must not have been a staff of a bank to be appointed as CEO guys.The current CEO of Citi Group was never a staff of Citi Group.This is a draconian law from CBN.There is nothing ethically wrong with a family  run bank.We need sound bank policies and regulation Sanusi.This will have no positive effect   on the banking industry.

At least some people still have sense in Nigeria. Though the analogy of Dangote might not have been the best, the conclusions drawn are spot on.

naijaking1:

There's no need to set a limit on bank CEOs, their tenure should be determined by the shareholders' interests and ability to work hard, make profit, and move the industry forward. What's next in Sanusi's arsenal of regulations? Limits on how much each person ought to have in his bank account? The downward slide of our financal sector continues

Please tell them o! A company owned by a group of people decide to appoint an experienced person as their oga. Why should CBN disallow it? I personally don't like Ovia and Elumelu for my own reasons and maybe i should be happy. But I am not. Because whats wrong is wrong. It has no long term benefit to our banking industry.

I thought nigeria encouraged capitalism, these people built these companies and can only be voted out by their shareholders, sanusi's tactics are too dictatorial and whatever is he trying to achieve??

you have spoken well brother, however i must disagree with you on certain issues regarding industry regulations. Firstly, the analogy you used sorts of falls out place, Dangote group of companies is not in the same industry as the banks who trade primarily with public funds, however If the Manufacturers Association of Nigeria (MAN) deem Dangote to have contravened their set rules and by so doing his continued stay as CEO would not be in the best interest of the public he can be asked to leave.
The banks are of course more indebted to the public than Dangote's enterprises so ts wont the focus be on them!

Dangote group of companies is a public company listed on the stock exchange.It is no longer solely owned by Dangote any longer.But he reamins the majority shareholder.I think in Nigeria for a company to be quoted on the stock exchange it has to sell either 49% or 51% of the company's shares to the public through an IPO.
As for trading with public funds,tell me any major company that does not trade with public funds(bank loans).As long as you borrow from a bank,you are essentially doing the same.

Nice move from sanusi, Why on earth will someone Sits at the helms of affair of a corporate organisation for 10 years, its doesn't make sense.
But on a second thought, Thiese CEO's could use this news as an avenue to steal monet from the banks.

daylight03:

I thought nigeria encouraged capitalism, these people built these companies and can only be voted out by their shareholders, sanusi's tactics are too dictatorial and whatever is he trying to achieve??

For many years now, we have been crying for Nigerians to invest their money at home and not hide it abroad, and possibly die with it like Mobutu. So, people responded by establishing different companies, such as banks. Now a banking messiah comes along and wants to "sanitze" the banking system, by abolishing family owned banks, restricting tenures, and firing too many people from the banks. Bankng is just like other professions, law, accountng, medicine; can you magne a law banning experienced lawyers from practicing just because they have been 10 years at the helm? Or chief medical directors of big hospitals being forced to quit because it's 10 years? It's all politcs for Sanusi, but it shouldn't.

Nice move from sanusi, Why on earth will someone Sits at the helms of affair of a corporate organisation for 10 years, its doesn't make sense.

Probably you started reading news just today.Being a CEO of a company has nothing to do with a political office.You don't do zoning system with CEO of a bank.Go and start your own company from scratch and build it into a global power and then come back and answer your question.The shareholders of Microsoft Corp asked the same question sometime ago.Microsoft once had Bill Gates as both Chairman and CEO.The shareholders had to force him to resign as CEO.He is now just the Chairman.Did you read that?
Shareholders forced him out as the CEO and not the regulators in USA.
And to your un-informed question 'Why on earth will someone Sits at the helms of affair of a corporate organisation for 10 years'
Have heard of a bank called Barclays.
The CEO of the bank(Bob Diamond) has been on that position since 1997.That's almost 13 years now.And the Bank of England are not planning to remove him just because he has stayed there for long.When will you Nigerians remove nepotism and replace it with some intelligence?

This Sanusi guy will soon overstep his boundaries. The guy must have been nursing this devilish ambition of his to deal with southern economic power brokers for a long time. He's like someone who, being unable to befriend a pretty girl, organises for her to be raped of for acid to be poured on her face to disfigure her for life.

How on earth do such persons get to such positions to do such things?

Which is more disastrous to the Nigerian Nation, these southerners he's labeling as bad or the northern political and ignorant thieves?

I'm sure the guy is going to find a way to go after churches next! Just wait and see

I hardly make comments on Nairaland but your comments are worth looking into:

chuckvyl:

Well,it never stops to amaze me the way Nigerians think.I think our problem could be traced to poverty and  poor education.Nigerians attach sentiments to most political and financial issues.Don't get offended guys.But i shall explain.Some people here are comparing Bank CEOs to politicians in terms of 'sitting tight'.What a shame.
Well,banks are private companies guys.It is a privately owned company hence CEOs should be determined by shareholders' votes.As a matter of fact,i expect the banks to challenge this in court.This is dictatorial in nature.CBN should not dictate to the shareholders how long they intend to keep a CEO.As a private company,Zenith bank is similar to Dangote Group PLC.Most of those guys who are CEOs are the majority shareholders in the banks.Removing them with this new CBN regulation is similar to asking Dangote to quit as Chairman of Dangote Group.Because both of them are private companies and not government run companies.Reason this critically before you comment.This new CBN law is a shame.It means that  Jim Ovia cannot be appointed  as CEO of another bank(by shareholders' vote) just because he has served 10 years at Zenith.Ovia has lots of experience in the banking industry.In developed countries people like him are well sought after.[/b]A bank that needs his experience should be free to appoint anybody as their CEO.You must not have been a staff of a bank to be appointed as CEO guys.The current CEO of Citi Group was never a staff of Citi Group.This is a draconian law from CBN.There is nothing ethically wrong with a family  run bank.We need sound bank policies and regulation Sanusi.This will have no positive effect   on the banking industry.

The newspaper report never mentioned anything about working for other banks:

rasputinn:

[b]Sanusi Ousts Ovia, Elumelu, Akinfemiwa

He said that even after the bank chief executive that has served a 10-year tenure must have left, he could only take up an appointment with the bank or any of its subsidiaries only after three years of his exit.

“Chief executive officers of banks shall henceforth serve a maximum of 10 years; All CEOs that would have served for 10 years by July 2010 shall cease to function in that capacity and shall hand over to their successors; Where a bank is a product of a merger, acquisition  or takeover or any other form of combination, the 10 years shall include the pre and post combination  service years of a  CEO, provided the bank, which he served as a CEO  was part of the new banks that emerged after the combination; Any person that has served as CEO for the maximum tenure in a bank shall not qualify for an appointment in that bank or its subsidiary until after a period of three years of his exit as CEOs,” he said.

I am sure the above negates the assertion you made that I embolden above.


You also said and I quote:

"Well,banks are private companies guys.It is a privately owned company hence CEOs should be determined by shareholders' votes.As a matter of fact,i expect the banks to challenge this in court.This is dictatorial in nature.CBN should not dictate to the shareholders how long they intend to keep a CEO.As a private company,Zenith bank is similar to Dangote Group PLC."


I am of the opinion that before you make assertions, it must be thought through. The CEO of Public Liability Companies  are not chosen by the shareholders, the CEO of companies are chosen by the board. The board is initially constituted by the founder.


Zenith bank is not in anyway similar to Dangote Group.

Industries differ based on service/product, market and regulations. Regulation is a key component of what makes an industry. If you are interested in investing in an industry, it is imperative you review the regulations which is an element of the barrier to entry. The new regulation does not hinder enterprise development in Nigeria, it actually tries to safe gurads it (albeit, not perfect)

chuckvyl:

Dangote group of companies is a public company listed on the stock exchange.It is no longer solely owned by Dangote any longer.But he reamins the majority shareholder.I think in Nigeria for a company to  be quoted on the stock exchange it has to sell either 49% or 51% of the company's shares to the public through an IPO.
As for trading with public funds,tell me any major company that does not trade with public funds(bank loans).As long as you borrow from a bank,you are essentially doing the same.

@ chuckvyl


This is another of your comment worth taking a shot at;

I don't really know what you are saying about the amount of shares you must sell and I dont know where you got it from.

Taking a loan from a bank is far different from collecting money from the public; the latter guarantees nothing while the formal guarantees a collateral which can be liquidated to get back your funds. Putting your money in the bank is risky; if the bank goes under, your money is as good as gone;e NDIC can only guarantee you a sum of fifty thousand naira if you have any sum above it. What this means is that if your life savings of 20 million is in an insolvent bank, you are only guaranteed fifty thousand to be paid at their own pace.

Lastly, Nigeria is not England or any other country; our cultures and attitude to things are diffferent.

The banking industry is very sensitive; I believe Sanusi is doing is best to make it sane. Let's encourage him and not just read unnecessary meaning to things. He went as far as including himself in the new rule.

I guess I am out,

I am beginning to Love this Guy.He has brass balls. I don't care if he's hausa, Yoruba, Ibo, lebanese, indian or pakistani.

If you can keep my deposits safe, you have my best intrest at heart.

We need such people. Gone are the days of Alhaji , Alhaji.

Despite the arguments that the govt is meddling with the affairs of private institutions.

Most of the banks deposits below to everyday commoners like you and I, market women, traders, artisans, teachers,s tudents, etc.

So it is the best interest of country that these CEO's don't stay more than 10 years in their position. If you ask me 5 years should be the max,let them serve in other capacities.

That is one way of ensuring that these people don't manupulate the system by exerting undue influence, to the detriment of the banks.

naijaking1:

For many years now, we have been crying for Nigerians to invest their money at home and not hide it abroad, and possibly die with it like Mobutu. So, people responded by establishing different companies, such as banks. Now a banking messiah comes along and wants to "sanitze" the banking system, by abolishing family owned banks, restricting tenures, and firing too many people from the banks. Bankng is just like other professions, law, accountng, medicine; can you magne a law banning experienced lawyers from practicing just because they have been 10 years at the helm? Or chief medical directors of big hospitals being forced to quit because it's 10 years? It's all politcs for Sanusi, but it shouldn't.

If one follows your logic, then why regulate the banking industry at all?
The CBN has not barred anyone from have substantial shares in a bank for life, rather it has said you cannot be a CEO for life!
The banking sector is not a free market that you can enter and depart at will. You have to be authorized by the CBN to receive public funds. People deposit with banks because the CBN 'vouches' for those banks, and consequently your deposits are insured by the NDIC. Thus the CBN have the right to dictate terms for running said institutions.
There might be no tenure restrictions for lawyers, but there are definitely restriction for judges. Any positoin that involves the trust of the public, should be well policed so that said trust not be abused.
The likes of Ovia can continue to have major stake in their banks, but unless you prove they are the only people that can successful lead such banks, they have no reason to be live CEO/MDs.

who is sanusi?

Nice points dipotepede.

In addition to what dipotepede wrote;

@ chuckvyl
The analogy of banks and Dangote Industries is faulty. Banking is a deposit taking industry. Dangote is not. You need to consider depositors in regulating banking. You have no such consideration for Dangote Industry. Banking is a regulated industry anywhere in the world. The reasons are obvious. It is the duty of CBN to regulate the industry in Nigeria and they are doing just that. Regulators in each country draw up regulations based on the uniqueness of their environment. All US banking regulations will not work without modification for all UK banks operating in the UK and vice versa. It is simply not right to think that CBN should not draw up banking regulations tailor-made for the Nigerian banking industry.

Sanusi has started getting it. I think he has learnt from his recent bumbling. This latest regulation is a master piece

With the new regulation, the era of running banks as cult with CEOs controlling bank boards will be gone. The absolute power which enables CEOs to be richer than their banks will be diluted because the board knows the CEO has only ten years and he/she cannot scheme to become chairman of the board (immediately after stepping down) in order to cover tracks of any malpractices during tenor as CEO. I think this will encourage the boards to be less timid.

Management staff of CBN and NDIC cannot also aid and abet malpractices in financial institution just because they want to join the board of those institutions (or their subsidiary) immediately after resignation/retirement.

I support Sanusi all the way on this!