THE Central Bank of Nigeria, CBN, in a bid to further strengthen financial institutions and reposition them to perform their statutory roles, has issued a new Code of Corporate Governance for Bureau De Changes (BDCs) in the country.
In a circular to Other Financial Institutions (OFIs), signed by Director Financial Policy and Regulation Department, CBN, Kevin Amugo, the bank stated: “Pursuant to the provisions of section 33 (1) b of the CBN Act No. 7 of 2007; and sections 57, 61-33 of the Bank and Other Financial Institution Act (BOFIA) of 1991 (as amended), the CBN hereby issues the Code of Corporate Governance in respect of the under-listed six Other Financial Institutions (OFIs): Micro-finance Banks, Development Finance Banks, Primary Mortgage Banks, Mortgage Refinance Companies, Finance Companies and BDCs.”
Section 2 of the code stated: “On separation of powers, the positions of the Board Chairman and the Managing Director/Chief Executive Officer shall be separate. No one person shall combine the two positions in any BDC at the same time. For the avoidance of doubt, no executive Vice Chairman shall be allowed in the Board structure.