By Yakubu LAAH InvestAdvocate

Lagos (INVESTADVOCATE)-The central bank of Nigeria (CBN) Tuesday unveiled a new code of corporate governance and whistleblowing guidelines for banks and discount houses.

This is contained in a circular dated May 16, 2014 with reference number FPR/DIR/CIR/GEN/01/004 and signed by Kevin .N. Amugo, director, financial policy and regulation department.

The CBN says the 40-page code of corporate governance supersedes the one issued on March 2006 and with the whistleblowing will take effect from October 01, 2014,

The CBN also said the government would no longer hold more than 10 percent stake in any bank, while investors are prohibited from owning more than five percent stake in any without the Nigeria’s central bank’s approval.

Sections 3.2 of the document on equity ownership states thus: “An equity holding of five per cent and above by any investor shall be subject to the CBN’s prior approval. Where such shares are acquired through the capital market, the bank shall apply for a no objection letter from the CBN immediately after the acquisition. In order to discourage government(s) from having majority shareholding in banks, government(s) direct and indirect equity holding in any bank shall be limited to 10 per cent.”

Also, banks would henceforth disclose the remuneration of their board of directors in their annual reports.