CBN Orders Banks To Announce New CEOs Three Months Before Transition

THE Central Bank of Nigeria (CBN) has directed all Domestic Systemically Important Banks (DSIBs) to publicly announce the appointment of a new Managing Director/Chief Executive Officer (MD/CEO) at least three months before the outgoing chief steps down.

In a circular signed by Rita I. Sike, Director of Financial Policy & Regulation, the apex bank also mandated that regulatory approval for a successor must be secured no later than six months before the incumbent’s exit.

The CBN said the directive is to ensure seamless leadership transitions, minimize management disruptions, and mitigate risks linked to abrupt changes in bank leadership.

The guidelines, aligned with Section 2.14 of the CBN’s 2023 corporate governance code, also stress the need for approved succession plans covering MD/CEOs, Executive Directors, and senior management staff.

“Given the critical role DSIBs play in financial system stability, effective succession planning is non-negotiable,” the CBN stated, warning banks to ensure strict compliance.