BREAKING: CBN Gives Sweeping Directive To Banks On MD/CEOs, Top Executives Succession Plan

CBN has given a sweeping directive to banks on MD/CEOs and top executives succession plan.

 

NewsOnline Nigeria reports that the Central Bank of Nigeria (CBN) has issued a sweeping directive to Domestic Systemically Important Banks (DSIBs), mandating strict succession planning for Managing Directors/Chief Executive Officers (MD/CEOs) and other top executives.

In a new circular signed by Dr. Rita Sike, Director of the Financial Policy and Regulation Department, the apex bank said DSIBs must secure regulatory approval for a successor to their MD/CEO no later than six months before the incumbent’s tenure ends. Additionally, banks are required to make the successor’s appointment public at least three months before the outgoing MD/CEO officially leaves office.

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The CBN explained that the move is designed to strengthen corporate governance, minimize risks associated with abrupt leadership exits, and safeguard financial stability.

“This requirement seeks to minimize disruptions at the top management level, enable appointees to prepare adequately for their new roles, and generally mitigate risks associated with abrupt changes in leadership,” the circular stated.

The directive, which takes immediate effect, builds on Section 2.14 of the CBN’s 2023 Corporate Governance Guidelines, which emphasize the need for boards of banks to implement effective succession plans for senior executives.

Ensuring stability in Nigeria’s financial system

 

The CBN stressed the critical role of DSIBs in Nigeria’s economy, noting that their size and interconnectedness make them too important to fail. According to the bank, any disruption at the top management level of these institutions could have widespread ripple effects across the financial sector.

The directive is also intended to align Nigeria’s banking practices with international standards. By enforcing early succession planning, the apex bank hopes to prevent uncertainty, strengthen resilience, and reassure stakeholders including investors, customers, and regulators that the sector remains robust.

Recent leadership shake-ups in banking

This development comes barely three weeks after Access Holdings Plc announced the appointment of Mr. Innocent Ike as its substantive Group Managing Director/CEO, effective August 29, 2025, following regulatory approval. His appointment followed the resignation of Roosevelt Ogbonna from the board in compliance with CBN’s governance guidelines.

Earlier this year, other leadership changes swept through the group, including the exit of long-serving director Seyi Kumapayi and the return of Aigboje Aig-Imoukhuede as chairman after the passing of former Group CEO Herbert Wigwe in 2024.

The CBN’s directive is expected to shape future leadership transitions in the banking sector, forcing institutions to adopt more transparent and structured succession plans.