The Central Bank of Nigeria (CBN) has introduced a policy requiring Domestic Systemically Important Banks (DSIBs) to get approval for new managing directors six months before the current CEO leaves.
They must also announce the successor publicly three months ahead. This change aims to improve corporate governance, cut risks, and build trust in Nigeria’s banking system.
Circular Details
The CBN’s circular, signed by Financial Policy and Regulation Director Dr. Rita Sike and posted on its website on September 17, 2025, states: “DSIBs must secure regulatory approval for a successor MD/CEO no later than six months before the incumbent’s term ends.
Announce the appointment publicly no later than three months before the exit.”
The bank warns that leadership gaps in large banks could harm the financial sector and economy. The rule draws from Section 2.14 of the 2023 Corporate Governance Guidelines, which calls for solid succession plans for top executives in commercial, merchant, non-interest, and payment banks.
Why the Change Matters
CBN says the policy reduces top-level disruptions, lets new leaders prepare, and avoids sudden changes. DSIBs, or “too big to fail” banks, are vital due to their size and links to the economy.
A leadership shake-up could affect depositors, investors, and other firms.
The directive aligns with global standards, where regulators push for detailed succession plans to manage risks. Many central banks require plans for CEOs and other leaders to ensure smooth handovers.
Recent Bank Leadership Shifts
The rule follows several changes in Nigeria’s banking scene. Access Holdings Plc recently got CBN approval for Innocent Ike as Group Managing Director after Roosevelt Ogbonna left the board.
Seyi Kumapayi also stepped down earlier. Aigboje Aig-Imoukhuede returned as Access Holdings chairman after Herbert Wigwe’s death in 2024, showing the need for planned transitions.
Tighter Timelines for DSIBs
DSIBs now have stricter rules for leadership changes. They must start planning early, get CBN nod six months out, and go public three months before. This gives stakeholders—staff, clients, investors, and regulators—clear visibility.
Banks may need to develop talent pools, train insiders early, and balance new ideas with steady strategy. Analysts say it signals stability amid issues like currency swings, inflation, and higher rates. It could also limit rumors that shake market trust.
Industry Views
Bank leaders welcome the policy as a safety net. A top bank executive said the deadlines might be challenging but will force better talent strategies.
Some experts note potential issues with surprise exits, like resignations or deaths, and suggest regulators allow some flexibility while keeping strong plans.
Part of CBN Reforms
Under Governor Olayemi Cardoso, the directive fits CBN’s push for better governance and resilience. Recent moves include forex changes and bank capital boosts to make Nigeria’s banks more competitive globally.
Succession planning strengthens this effort, stressing high standards for financial institutions.
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