By Yinka Kolawole

The Central Bank of Nigeria (CBN) has set fitness criteria for persons seeking to occupy top positions in primary mortgage institutions (PMIs) to ensure that only “fit and proper persons” are considered for appointment to top management positions as well as serve as significant shareholders (5% and above) in the banks.

This was contained in a circular, dated June 21, 2011, to all banks, discount houses and other financial institutions (OFIs) titled: “Assessment Criteria for Approved Person’s Regime for Financial Institutions”, signed by CBN’s Director, Financial Policy and Regulation Department, Mr. Chris Chukwu.

According to the circular, the objective is: “To assess competence of candidates for Board and top management positions, their capacity to fulfill the responsibilities of their positions and their ability to understand the technical requirements of the business.”

It further stated that performance on the job is an integral part of the assessment, “thus candidates shall be subjected to a continuous fitness and propriety test every 2 years or any other period as may be specified by the CBN”.

To qualify for the post of Managing Director/Executive Director in a mortgage bank, a person must have a minimum of first degree or its equivalent in any discipline

(additional qualification in any business related discipline may an advantage); a minimum of 10 years post qualification experience out of which, at least, 5 must have been in financial services industry and at least, 3 at the senior management level.

For Departmental Heads, the requirements are: a minimum of first degree or its equivalent in any discipline (additional qualification in any business related discipline may an advantage); and a minimum of 5 years post-qualification experience out of which, at least, 4 must have been in financial services industry at least, 2 at the senior management level.

In the case of Non-Executive Directors, they are required to possess A first degree or its equivalent in any discipline; A minimum of 5 years post qualification experience; Proven skills and competencies in their fields; Knowledge of the operations of the financial institution and relevant laws and regulations guiding the financial industry and; Ability to make meaningful contributions to board deliberations.