Nigeria, June 23 -- Nigeria's Securities and Exchange Commission (SEC) has issued a far-reaching directive that is shaking the leadership inclinations across the entire capital market landscape in Nigeria.

The policy, which requires draconian capping of directors of Capital Market Operators (CMOs) deemed to have "significant public interest," jolted the entire capital market world with fear and uncertainty. With chiefs beating deadlines to understand the scope and meaning, enforcement, definition, and compliance issues have arisen.

The new provision, as explained in a circular issued by the SEC, restricts directors of the companies to a tenure of 10 consecutive years with the same company and 12 years with companies that belong to the s...