The Central Bank of Nigeria (CBN) has directed all Domestic Systemically Important Banks (DSIBs) to publicly announce the appointment of a new Managing Director/Chief Executive Officer (MD/CEO) at least three months before the current officeholder steps down.
In a circular signed by Rita I. Sike, Director of the Financial Policy and Regulation Department, the apex bank said the measure is part of efforts to guarantee smooth leadership transitions and minimise disruptions at the helm of major financial institutions.
The directive also requires banks to secure regulatory approval for a successor’s appointment no later than six months before the outgoing MD/CEO’s tenure ends.
“This requirement is aimed at minimising disruptions at the top management level, enabling appointees to adequately prepare for their new roles, and mitigating risks associated with abrupt leadership changes,” the circular stated.
The CBN cited Section 2.14 of its 2023 corporate governance guidelines, which obliges boards of commercial, merchant, non-interest, and payment service banks to approve succession plans for top executives, including MD/CEOs, executive directors, and senior management staff.
The apex bank emphasised that DSIBs play a critical role in maintaining financial system stability and urged strict compliance with the new succession planning rules.
