The Central Bank of Nigeria (CBN) has directed Domestic Systemically Important Banks (DSIBs) to obtain regulatory approval for the appointment of a successor Managing Director/Chief Executive Officer (MD/CEO) at least six months before the incumbent’s tenure ends.
Gatekeepers News reports that the directive, contained in a circular signed by Rita Sike, director of financial policy and regulation, is aimed at strengthening corporate governance, ensuring leadership continuity, and minimizing disruptions that could destabilize the financial system.
The circular also mandates that banks must publicly announce the appointment of a successor no later than three months before the outgoing MD/CEO officially exits office. The directive takes immediate effect and aligns with Section 2.14 of the CBN’s 2023 Corporate Governance Guidelines for Commercial, Merchant, Non-interest, and Payment Service Banks.
“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.
The apex bank underscored the critical role of DSIBs—often regarded as “too big to fail”—in safeguarding Nigeria’s financial stability, warning that abrupt leadership transitions could trigger ripple effects across the economy.
By enforcing early succession planning, the CBN aims to reassure stakeholders, strengthen investor confidence, and align Nigerian banking practices with international best standards.
The directive comes amid heightened leadership transitions in the sector. Just three weeks ago, Access Holdings Plc announced the appointment of Innocent Ike as Group Managing Director/Chief Executive Officer, effective August 29, 2025, following regulatory approval. His appointment followed the resignation of Roosevelt Ogbonna from the board in compliance with CBN’s corporate governance rules.
Access Holdings has undergone several changes since the passing of former Group CEO Herbert Wigwe in 2024. This year alone, senior figures including Seyi Kumapayi and Ogbonna have stepped down to comply with governance requirements, while Aigboje Aig-Imoukhuede returned as chairman to steer the group into a new phase.
