By Udeme Clement
The Central Bank of Nigeria (CBN), has been advised  to put measures in place to ensure that stakeholders in banks play  a major role in the appointment of new bank managing directors to ensure transparency in the sector

The ex_ officer, Association of Senior Staff of Banks Insurance and financial institutions (ASSBIFI), Mr. Otio Nathaniel, disclosed this in an exclusive chat with Vanguard in Lagos .

He added, “the reality is that the new chief executive officers of Skye bank, United Bank of Africa (UBA) and Zenith, who took over from their predecessors recently in compliance with the new policy of CBN on five years of not more than two terms for managing directors are skilled bankers and would bring their experience to bear in maximising outputs for the organisations in the long_run.

But the most important thing is for CBN to ensure that stakeholders who put their money in such banks participate in the appointment of new managers.  The reason being that, there could be that tendency of the outgoing managing directors influencing the appointment of their successors in a bid to cover up for their financial excesses”.

He enthused: “credit must be given to the management of CBN for the policy initiative and timely implementation. But, beyond that, it is expected that, the CBN must have taken into consideration the fact that outgoing chief executives must not be allowed to appoint their relations to succeed them.

CBN as the apex bank and the major regulator in the financial sector must ensue that the process of appointing new managing director for these banks is independent.”

On why he says shareholders should participate in the appointment of new bank managers, he explained, “If such policy is not in place, where the stakeholders are allowed to contribute to such appointment, there could be problem in future. In fact, we would have a situation like what is happening in politics where public office holders bring in their relations and friends to succeed them.

If such practice is allowed in the banking sector, the economic implication is that the banking sector may collapse. The reason being that, the new managers would not be able to effect positive changes in the industry, because they would be compelled to cover up for the former chief executives who brought them to the top, so there would be not transparency at all in the system”.

His perspective on the CBN ten years policy structure, “this is a good policy initiative, because it would allow development in the sector and would put an end to a situation where one managing director remains perpetually in office without any other person succeeding him.  The new policy would also allow others would who have the skills and experience to manage the banks, and they would bring their technical_know_how to bear in moving the banking sector forward.”

On the sudden removal of the Director General, Nigerian Stock Exchange (NSC),  Ndi Okereke, just one month to the end of her tenure, he asserted, “the removal of Okereke at the time her tenure remains only a month was not necessary.

She ought to have been removed earlier than now, if that was what the Federal Government wanted to do. If you look at the situation critical, you would realise that, she ought to have addressed some of the issues that CBN is tackling now, if she was active. She has been there for a very long time, so government should have allowed her to finish her tenure that is remaining few days.