The Central Bank of Nigeria (CBN) has directed all Domestic Systemically Important Banks (DSIBs) to obtain its approval for the appointment of successor managing directors at least six months before the exit of current incumbents.
The apex bank also mandated that such appointments must be made public at least three months before the outgoing chief executive officially leaves office.
The directive was contained in a circular signed by the CBN’s Director of Financial Policy and Regulation, Rita Sike, and published on the bank’s website on Tuesday.
According to the circular, the policy aligns with Section 2.14 of the 2023 Corporate Governance Guidelines, which requires banks to maintain clear succession plans for senior leadership. The aim is to minimise disruptions, enable adequate preparation for successors, and reduce risks linked to sudden leadership changes.
“Each DSIB is required to ensure it obtains regulatory approval for the appointment of a successor MD/CEO not later than six months to the expiration of the tenure of the incumbent, and publicly announce the appointment not later than three months to the planned exit,” the circular stated.
The CBN explained that the measure is critical because DSIBs play a stabilising role in the financial system, and poor leadership transitions could trigger wider instability. It added that the directive brings Nigeria closer to international best practices in corporate governance.
The policy comes shortly after Access Holdings Plc confirmed Innocent Ike as its substantive Group Managing Director, following regulatory approval after Roosevelt Ogbonna’s exit in line with governance rules. The return of Aigboje Aig-Imoukhuede as chairman, after the death of Herbert Wigwe, also underscored recent leadership changes in the sector.
With the new rules, banks will now be under increased pressure to ensure orderly succession planning, offering stakeholders greater clarity and stability during leadership transitions.
ADEOLA KUNLE
