The Central Bank of Nigeria (CBN) has issued a sweeping directive to Domestic Systemically Important Banks (DSIBs) mandating early succession planning for their Managing Directors/Chief Executive Officers (MD/CEOs) and other top executives.
The move is aimed at strengthening corporate governance and minimizing disruptions that could destabilize the financial system.
In a circular signed by the Director of the Financial Policy and Regulation Department at the CBN, Dr. Rita Sike, the apex bank instructed that all DSIBs must obtain regulatory approval for a successor MD/CEO not later than six months before the expiration of the incumbent’s tenure.
Also, banks are required to publicly announce the appointment of a successor no later than three months before the outgoing MD/CEO officially exits office.
The new directive, which takes immediate effect, builds on Section 2.14 of the CBN’s 2023 Corporate Governance Guidelines for Commercial, Merchant, Non-interest, and Payment Service Banks.
These guidelines emphasize that boards of financial institutions must establish succession plans for their MD/CEOs, Executive Directors, and senior management to ensure leadership continuity and organizational resilience.
Maintaining stability in Nigeria’s financial system
The CBN stressed the vital role of DSIBs in maintaining the stability of Nigeria’s financial system. These banks, because of their size and interconnectedness, are considered too critical to fail, and any disruption in their leadership could have ripple effects across the economy.
“This requirement seeks to minimize 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 circular stated.
By compelling banks to prepare leadership transitions well in advance, the apex bank aims to avert uncertainties and reassure stakeholders—including customers, investors, and regulators—that Nigeria’s banking sector remains stable and resilient.
The directive reflects the CBN’s determination to align Nigerian banking practices with international best practices. Sudden leadership exits, whether due to resignation, retirement, or unforeseen circumstances, often leave institutions vulnerable. With early regulatory approval and public announcements, the CBN believes banks will be better positioned to manage change seamlessly.
What you should know
This CBN circular was issued barely three weeks after Access Holdings Plc announced the appointment of Mr. Innocent Ike as its substantive Group Managing Director/Chief Executive Officer (GMD/CEO), effective August 29, 2025, following regulatory approval.
The move came just hours after Roosevelt Ogbonna stepped down from the company’s board in line with new corporate governance rules.
Ike’s appointment signals a new phase under the chairmanship of Aigboje Aig-Imoukhuede, who returned to lead the group after the passing of former Group CEO Herbert Wigwe in 2024.
Leadership changes have been gathering pace in recent months. Earlier this year, Seyi Kumapayi, one of the group’s longest-serving directors, left the board. More recently, Roosevelt Ogbonna, Managing Director of Access Bank, also resigned from the HoldCo board to comply with the Central Bank of Nigeria’s 2023 corporate governance guidelines, which limit HoldCo boards to nine members.
