CBN Tasks Banks To Secure Regulatory Approval Of MD/CEO Successors Six Months Before Incumbent Exit

By Clement Nwoji, Abuja

The Central Bank of Nigeria (CBN) has directed Banks in the country to ensure getting regulatory approval for the appointment of a successor Managing Director (MD/CEO) not later than six months to the expiration of the tenor of the incumbent MD/CEO.

Further, the apex bank maintained that such approved successor MD/CEO must be announced not later than three months to the planned exit of the incumbent MD/CEO.

According the CBN in a circular to all Domestic Systemically Important Banks (DSIBs), “This requirement seeks to minimise disruptions at the top management level, enable top management appointees to prepare adequately for their new roles, and generally mitigate risks associated with abrupt changes in leadership.”

The statement signed by the CBN Director, Financial Policy and Regulation Department, Dr. Rita I. Sike, cited Section 2.14 of the Central Bank of Nigeria (CBN) Corporate Governance Guidelines for Commercial, Merchant, Non-interest, and Payment Service Banks in Nigeria, 2023.

The provision requires boards of commercial, merchant, non-interest, and payment service banks to approve succession plans for their Managing Directors/Chief Executive Officers (MD/CEO), other EDs and senior management staff.

“In recognition of the critical role that Domestic Systemically Important Banks (DSIBs) play in sustaining financial system stability, the CBN hereby reiterates the importance of effective succession planning in these institutions”, the CBN stressed.

It further stated that n line with good corporate governance practice, each DSIB is directed to comply strictly with the provisions.

The circular dated September 16th, 2025, has subject matter as “appointment and announcement of successors to managing director.”