Boardroom boundaries

Nigeria's SEC bars independent directors from executive roles, sets 10-year term limits, and imposes a three-year "cool-off" for ex-CEOs, enhancing governance.

Nigeria’s Securities and Exchange Commission (SEC) has barred independent non-executive directors from transitioning into executive roles, such as CEO, within the same company or group. This move aims to preserve the integrity of independent oversight. In a new circular, the SEC also set term limits for directors in public interest entities: a maximum of 10 consecutive years in the same company and 12 within a group structure. Furthermore, former CEOs and executive directors must observe a three-year "cool-off" period before becoming board chairpersons. These reforms aim to strengthen corporate governance and prevent conflicts of interest in Nigeria’s capital markets.