The Securities and Exchange Commission (SEC) has introduced new corporate governance rules to strengthen transparency and board independence in Nigeria’s capital market. Effective immediately, CEOs can no longer transition directly into the role of Board Chairman within the same company or group. A mandatory three-year “cooling-off” period is now required.
The directive also bars Independent Non-Executive Directors from becoming Executive Directors in the same company.
According to the SEC, the move aims to curb undue power concentration and promote board neutrality.
Executives who serve 10 years in one company or 12 years in a group must step down, with tenure already served counting toward the limit.
The Commission urged strict compliance with these reforms.
