By Ihechi Enyinnaya
The Central Bank of Nigeria (CBN) has directed all Domestic Systemically Important Banks (DSIBs) to secure approval and announce successors to their managing directors and chief executive officers (MD/CEOs) at least six months before the incumbents’ exit.
The directive, issued in a circular signed by Rita Sike, Director of Financial Policy and Regulation, also requires banks to publicly disclose the appointment of successor MD/CEOs at least three months before the outgoing chief vacates office.
The CBN explained that the policy is anchored on Section 2.14 of its 2023 Corporate Governance Guidelines, which mandates commercial, merchant, non-interest, and payment service banks to maintain clear succession plans.
“This requirement seeks to minimise disruptions at the top management level, enable appointees to prepare adequately for their new roles, and mitigate risks associated with abrupt leadership changes,” the circular stated.
The apex bank noted that DSIBs, given their size and systemic importance, play a critical role in sustaining financial system stability. It added that enforcing early approvals and disclosures would reduce uncertainty among investors and depositors while aligning local practices with global standards.
Banks have been instructed to ensure strict compliance with the directive.