Business
Ovia, Elumelu, Agbaje affected as new CBN rule unseats bank chiefs
The Central Bank of Nigeria (CBN) says bank executive directors (EDs), deputy managing directors (DMDs), managing directors (MDs), and non-executive directors (NEDs) can only serve a cumulative tenure of 20 years across the banking industry.
The new directive is contained in a circular addressed to all deposit money banks (DMBs), signed by Chibuzor Efobi, director of financial policy and regulation department, CBN, and seen by TheCable.
The circular was a revision of the regulatory requirements for the tenure of executive management and non-executive directors of DMBs and financial holding companies in the Code of Corporate Governance for Banks and Discount Houses (Ref: FPR/DIR/ClR/GEN/01/004).
CBN said the tenure review was part of measures aimed at strengthening governance practices in the banking industry.
“The tenure of executive directors (ED), deputy managing directors (DMD) and managing directors (MDs) shall be in accordance with the terms of their engagement approved by the board of directors of banks, subject to a maximum tenure of ten (10) years,” the apex bank said.
“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 twelve (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 twelve (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 1 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 1 year before being eligible for appointment to the board of directors of any other DMB.”
CBN added that the above tenure requirements shall apply “effective the date of this circular”.
WHO WILL BE AFFECTED
TheCable understands that the implementation of the new rule will see the exit of many top bank executives in Nigeria. Those who will be affected include:
Jim Ovia
First on the list is Jim James Ovia, a Nigerian businessman.
A native of Delta state, Ovia founded Zenith Bank in 1990. He retired from the bank in 2010 following a similar CBN policy which limited the tenure of banks chief executive officers (CEOs) to a maximum of 10 years.
However, the billionaire was later appointed as board chairman and non- executive director of the bank in 2014.
Tony Elumelu
At 34-years-old, Elumelu was the CEO of the defunct Standard Trust Bank, a company he later merged with United Bank for Africa (UBA) in 1997.
With the merger, he remained as the bank’s CEO and served for 13 years until his retirement in 2010 when the said policy of 10-year tenure limits for bank CEOs was implemented by the CBN.
Elumelu was appointed chairman of UBA in 2014, replacing Ambassador Joe Keshi.
Segun Agbaje
The astute banker moved from working for Ernst & Young in the US in 1988 to Guaranty Trust Bank (GTBank) — now Guaranty Trust Holding Company (GTCO) — as a pioneer staff in 1991 and rose through the ranks to become executive director in the year 2000 and deputy managing director in 2002.
Agbaje was later appointed as the substantial MD and CEO of GTBank in June 2011, when Tayo Aderinokun passed.
Herbert Wigwe
After over 10 of service, Wigwe left GTBank as an ED to co-lead the transformation of Access Bank Plc in March 2002 as DMD.
He was appointed group managing director/CEO effective January 1, 2014 and served in that capacity till May 2022. Wigwe was subsequently appointed a non-executive director of the bank effective May 2022.
Business
FG launches amnesty scheme to allow deposits of foreign currencies outside banking system
The federal government has launched an amnesty initiative that allows individuals to deposit foreign currencies into banks without penalties or taxes — provided the funds are not proceeds of crime.
Announcing the initiative in a statement on Thursday, the ministry of finance said the programme is called the ‘Disclosure Scheme’.
Mohammed Manga, the ministry’s director of information and public relations, said the scheme, starting October, is for nine months.
He said by facilitating the voluntary disclosure, depositing, repatriation, and investment of internationally tradable foreign currency held by Nigerians, both within and outside the country, “the scheme aims to integrate these legitimate foreign currency assets into the formal economy”.
“The federal government of Nigeria is pleased to announce the commencement of the foreign currency voluntary disclosure, depositing, repatriation, and investment scheme, known as the disclosure scheme, in pursuance of Executive Order No. 15 of 2023 titled ‘Disclosure, Depositing, Repatriation, and Investment of Eligible Foreign Exchange Assets and Related Matters Order, 2023’ and the ‘Foreign Currency Disclosure, Deposit, Repatriation, and Investment Scheme Guidelines, 2024’, issued by the Honourable Minister of Finance and Coordinating Minister of the Economy, on October 25th, 2024,” the statement reads.
“Key objectives of the disclosure scheme: enhance financial transparency: Promote transparency in the financial sector by formalising legitimate foreign currency assets held outside the Nigerian banking system by Nigerians within or outside of Nigeria.
“Bolstering AML and CFT capabilities: The scheme specifically targets weaknesses in the existing framework by promoting cashless and legitimate transactions within the formal financial system.
“This strengthens regulatory enforcement while also encouraging financial practices that reduce the likelihood of illicit cash transactions.”
‘FUNDS WILL INCREASE RESERVES’
Speaking on the scheme, Wale Edun, minister of finance and coordinating minister of the economy, said the initiative would enhance financial security and contribute positively to the economy by increasing reserves and stabilising exchange rates.
“The disclosure scheme is a bold initiative aimed at integrating foreign currency outside the formal financial system into the formal economy,” Edun said.
“It strengthens transparency and economic resilience, setting us on a path to rapid economic growth.
“The scheme offers a secure, confidential channel for people to reintegrate their legitimate foreign currency funds, promoting stability and growth for our nation.
“Guided by President Tinubu’s leadership and supported by the Central Bank of Nigeria (CBN) and Ministry of Justice, we are building a transparent and inclusive economy, aligned with best practices in anti-money laundering and countering the financing of terrorism.”
Edun encouraged Nigerians holding legitimately earned foreign currency to participate.
Business
Immigration to launch contactless passport application system Friday
The Nigeria Immigration Service (NIS) is set to launch a contactless passport application system on Friday.
Phase one of the launch will be in Canada, the NIS announced in a video via its X account.
The second phase will be rolled out in the United Kingdom, United States, and Italy on November 15.
Nigeria and the rest of the world will access the system from December 1, marking the third phase.
The NIS noted that the process applies only to passport renewal.
Previously, passport applications were a contact-integrated digital process.
While applicants could fill a form, select a passport processing centre, make payments, and book appointments for biometric enrolment online, biometric capturing and passport pickups were at NIS-specified centres.
“Individuals will be able to apply to renew their international passports from the comfort of their homes without having to visit any NIS office,” the NIS said.
Applicants will be able to renew their passports by downloading the NIS mobile app available on Google play, the app store, and the Windows store, or by visiting the immigration portal.
Although the app has yet to be available on any of the digital stores, the NIS said Nigerians in Canada are expected to access the app on these platforms and begin using the service from the designated date.
Business
NNPC increases pump price to N1,025 in Lagos, N1,050 in Abuja
The Nigerian National Petroleum Company (NNPC) Limited has again increased the price of premium motor spirit (PMS), also known as petrol, across its retail outlets.
On Tuesday, TheCable observed the second increase in October.
NNPC increased the pump price from N855 per litre set in September to N998 per litre on October 3.
However, at the NNPC retail outlets located at Ago Palace Way, Okota, Lagos, the price of PMS has been increased to N1,025 per litre.
The increase comes more than one month after the NNPC commenced petrol lifting at the Dangote Petroleum Refinery’s gantry after an extended period of price negotiations.
On September 15, the NNPC said petrol was bought from Dangote refinery at N898 per litre.
The Dangote refinery countered NNPC’s claim, describing it as “both misleading and mischievous”.
A day after, the national oil company announced estimated pump prices based on prices set by the Dangote refinery for its petroleum products, saying petrol will sell for N950 in Lagos and N999 in Abuja.
On October 10, the Independent Petroleum Marketers Association of Nigeria (IPMAN) asked NNPC to refund the oil marketers’ money or to sell petrol to its members at the Dangote refinery rate.
IPMAN said its members’ money has been with NNPC for over three months.
According to the association, NNPC collected PMS from the Dangote refinery below N900 per litre, but NNPC wants oil marketers to buy the same product at the rate of N1,010 in Lagos, N1,045 in Calabar, N1,050 in Port Harcourt, and N1,040 in Warri.
On October 11, the federal government said oil marketers can now buy petroleum products directly from the Dangote refinery and other local producers — one week after directing the Dangote refinery to sell petrol to only the NNPC.
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