Section 47: Disqualification and Exclusion of Certain Individuals from Management of Banks.

(1) Every bank shall, before appointing any director, chief executive or management staff of such grade as may be specified from time to time by the Bank, seek and obtain the Bank's written approval for the proposed appointment.
(2) No bank shall employ or continue the employment of any person as a director, manager, secretary or an officer who-
(a) is of unsound mind or, as a result of ill health, is incapable of discharging his duties;
(b) is dismissed from the service of the Federal, State or Local Government or any of the agencies of such government; or
(c) is declared bankrupt or suspends payments or compounds with his creditors, including his bankers;
(d) is convicted of any offence involving dishonesty or fraud;
(e) is guilty of serious misconduct in relation to his duties; or
(f) in the case of a person who possesses a professional qualification, is disqualified or suspended otherwise than of his own request from practising his profession by the order of any competent authority made in respect of him personally.
(3) No person who has been a director of, or directly concerned in the management of, a bank which has been wound up by the Federal High Court shall, without the express authority of the Governor, act or continue to act as a director of, or be directly concerned in the management of, any other bank.
(4) Any person whose appointment with a bank has been terminated or who has been dismissed for reasons of fraud, dishonesty or convicted for an offence involving dishonesty or fraud shall not be employed by any bank in Nigeria.
(5) The Bank shall remove from office any person to whom any of the provisions of subsection (2) applies:
Provided that in the case of paragraphs (b)-(f), the Bank may also prohibit any such person from serving on the board of, or from managing or from being employed by any institution under its supervision.
(6) Any bank which contravenes this section, commits an offence and is liable to a penalty of not less than N5,000,000 and an additional N100,000 for each day during which the contravention continues.
(7) Where a bank contravenes this section with the knowledge or connivance of any director, manager, secretary or any other officer of the bank, such officer, is liable to a penalty of not less than N2,000,000.
(8) Every institution regulated under this Act is required to submit to the Bankers' Committee Secretariat or any other body or office designated by the Bank, not later than two weeks after the date of termination or dismissal of any staff-
(a) the name,
(b) designation,
(c) reasons for termination or dismissal, and
(d) any other information that may be required by the Bankers' Committee Secretariat.
(9) It is not a defence for any director, manager or officer of a bank to claim that he is not aware of the provisions of subsection (4), unless such director, manager or officer can prove that prior clearance had been obtained for such a person from the Secretary of the Bankers' Committee Secretariat who maintains a register of terminated, dismissed or convicted staff of banks on the ground of fraud or dishonesty.