The Central Bank of Nigeria (CBN) has issued a new directive requiring all Domestic Systemically Important Banks (DSIBs) to obtain regulatory approval for the appointment of successor managing directors at least six months before the exit of incumbent chief executives.
In addition, the apex bank ordered that such appointments must be announced publicly no later than three months before the outgoing CEO officially vacates office.
The CBN said the policy shift is part of broader efforts to strengthen corporate governance, reduce uncertainty, and preserve public confidence in Nigeria’s financial system.
The directive was contained in a circular signed by the Director of Financial Policy and Regulation, Dr. Rita Sike, and published on the CBN’s website on Tuesday.
According to the circular:
“Consequently, and in line with good corporate governance practice, each DSIB is hereby required to ensure it obtains regulatory approval for the appointment of a successor Managing Director not later than six months to the expiration of the tenure of the incumbent MD/CEO.”
The new rule marks a significant step toward ensuring leadership stability in Nigeria’s banking sector.
