Banks to Replace Auditors that have Spent over ten Years

Sanusi, CBN Governor
The Central Bank of Nigeria has given all deposit money banks (DMBs) up to December 31, 2010 to replace external auditors that have been appointed for more than 10 years including years spent with constituent legacy banks.

 
This directive is in line with the provisions of paragraph 8.2.3 of the CBN Code of Corporate Governance for Banks, which stipulates that “the tenure of the auditors in a given bank shall be for a maximum period of ten years after which, the audit firm shall not be reappointed in the bank until after a period of another ten years.”
For the avoidance of doubt, the maximum period of 10 years shall include the period an audit firm which later merged/changed name, first commenced audit assignment in the bank.

Consequently, all banks are to submit their status of compliance with the provisions of the above stated paragraph of the Code on or before December 31, 2010 to the Director, Banking Supervision. Failure to comply will result in the CBN directing the affected auditors to resign mandatorily.
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Meanwhile President Goodluck Jonathan has launched the N50 (Fifty Naira) commemorative  note and non-circulating coin as part of activities to celebrate the country’s  50th Independence Anniversary, just as the Central Bank of Nigeria (CBN) announced plans to redesign the country’s banknotes series to reduce cost and enhance security.

Speaking during the official launching at a brief Federal Executive Council meeting, President Jonathan commended the management of CBN for its role in consolidating economic development of the country,  stressing that the Central Bank of any nation is always at the vanguard of economic development. While expressing FG’s support for the current financial sector reforms, the President urged the CBN to continue to work to consolidate on the economic gains so far recorded by the country.

In a remark before the presentation of the note and coin to the president, the CBN Governor, Sanusi Lamido Sanusi, said the apex Bank was working on new proposals to reintroduce coins into the economy . “We will soon unfold proposals for your Excellency that should mark the beginning of the return of coins into circulation in the economy” Sanusi said.

He assured the President that the CBN has evolved plans that would enhance the efficiency and self-reliance of the Nigerian Security Printing and Minting Company with a view to improving its performance. He added that the CBN is redesigning the Nigerian banknotes series to reduce costs and enhance security.

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