The Central Bank of Nigeria has directed Domestic Systemically Important Banks to implement early succession planning for their Managing Directors/Chief Executive Officers and other senior executives.

This initiative is designed to enhance corporate governance and reduce potential disruptions that could affect financial stability.

In a circular issued by the Director of the Financial Policy and Regulation Department at the CBN, Dr. Rita Sike, the apex bank stated that all DSIBs must secure regulatory approval for a successor MD/CEO at least six months before the current executive’s tenure ends.

Banks must publicly announce the appointment of a successor at least three months before the outgoing MD/CEO formally leaves office.

The directive, which takes immediate effect, reinforces Section 2.14 of the CBN’s 2023 Corporate Governance Guidelines for Commercial, Merchant, Non-interest, and Payment Service Banks.

The guidelines require boards of financial institutions to develop succession plans for their MD/CEOs, Executive Directors, and senior management to ensure leadership continuity and organizational resilience.

“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 CBN emphasized that DSIBs play a crucial role in maintaining the stability of Nigeria’s financial system.

Given their size and interconnectedness, these banks are deemed too critical to fail, and any leadership disruption could have widespread economic consequences.

The apex bank’s mandate for early leadership planning aims to minimize uncertainties and provide assurance to stakeholders—customers, investors, and regulators alike—that Nigeria’s banking sector remains robust and resilient.

The CBN circular comes just three weeks after Access Holdings Plc appointed Mr. Innocent Ike as its substantive GMD/CEO effective August 29, 2025, following regulatory approval.

The appointment followed the resignation of Roosevelt Ogbonna from the company’s board, in compliance with the new corporate governance rules.