The Central Bank of Nigeria CBN has introduced a new directive mandating all Domestic Systemically Important Banks DSIBs to obtain regulatory approval for the appointment of successor Managing Directors at least six months before the current CEO’s term ends.
Such appointments the CBN said must be made public no later than three months before the outgoing CEO officially leaves office. The new policy is aimed at enhancing corporate governance, reducing leadership uncertainty, and maintaining confidence in the country’s financial system.
The directive was communicated through a circular signed by Rita Sike, Director of Financial Policy and Regulation, and published on the CBN’s website. The CBN highlighted that leadership instability in large, influential banks poses serious risks to the broader financial sector and could potentially affect the entire economy. The new directive is designed to prevent disruptions at the senior executive level and promote smooth transitions in bank leadership.
The CBN explained that the updated succession rules are intended to, Mitigate risks linked to abrupt leadership changes, Allow incoming executives sufficient time to prepare for their roles, Support the long-term stability of the banking sector.
The new policy also aligns Nigeria’s banking regulations with international best practices, where succession planning is seen as an integral part of risk management. The CBN’s aim is to ensure Nigerian banks remain resilient, well-managed, and trusted by the public and global partners alike.
