- First Bank of Nigeria director, Gbenga Shobo, has resigned due to CBN's new rules on executive tenure limits
- The guidelines limit executive directors, deputy managing directors, and managing directors to a maximum tenure of 10 years
- The new guidelines affect many other bank executives and non-executive board members
Gbenga Shobo, the Deputy Managing Director of First Bank of Nigeria, has reportedly resigned from the company's board.
Shobo is expected to leave immediately in accordance with the Central Bank of Nigeria's (CBN) recent review of the term limits of bank executives.
The CBN issued a circular on Friday, 24 February, 2023, notifying banks of the new directive that sets a maximum tenure of 10 years for Executive Directors (EDs), Deputy Managing Directors (DMDs), and Managing Directors (MDs).
How the CBN new rules work
If an ED becomes a DMD before the end of their maximum tenure, their cumulative tenure should not exceed 10 years.
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Similarly, if an ED becomes an MD/CEO or DMB before their maximum tenure, their cumulative tenure should not exceed twelve years.
Reports on Shobo leaving his position
According to a tweet by Proshare, Shobo’s resignation followed CBN’s directives since he joined the bank's board in 2012.
The tweet reads:
"Gbenga Shobo, the Deputy Managing Director of First Bank of Nigeria, has stepped down from the Board of FBN with immediate effect due to the recent CBN circular on Executive management tenure limits."
Leadership also reported that Shobo relinquished his position per the new CBN guidelines.
More big directors to go
Leadership also revealed that another top director expected to proceed on immediate retirement is Ms Adaora Remy Umeoji, DMD, Zenith Bank. She was appointed ED in December 2012.
Also, Ladi Balogun, the Group CEO of FCMB Group Plc, who was CEO of First City Monument Bank Limited from 2007 to 2017, is expected to resign.
Banks to stop cash withdrawal in obedience to NFIU directives
In another report, Legit.ng revealed that banks would no longer grant requests for cash withdrawals from public accounts in the country.
The prohibition affects Nigerian governors, ministers, foreign missions and other public servants.
The move obeys NFIU directives to checkmate corruption among public officials.