Banking titans Jim Ovia and Tony Elumelu have been asked to resign by July after a new rule limiting the tenure of bank chiefs to 10 years. They are currently serving as MD and CEO of Zenith Bank and United Bank for Africa, respectively. They will not be able to reapply to the bank or its subsidiaries for three years.
The rule was agreed by a meeting of the Bankers’ Committee in Abuja – bank chiefs plus the central bank of Nigeria – and is effective immediately. It is one of several reforms spearheaded by central bank governor Lamido Sanusi, intended to limit the build-up of power and risk within the Nigerian banking system. Other proposals include cutting bank costs, replacing bank chiefs, toxic asset management and a radical suggestion on specialised banking.