The Central Bank of Nigeria (CBN) has introduced a new directive requiring Domestic Systemically Important Banks (DSIBs) to plan the succession of their Managing Directors/Chief Executive Officers (MD/CEOs) and senior executives well in advance. This measure aims to enhance corporate governance and ensure stability within Nigeria’s financial sector.
In a circular issued by Dr. Rita Sike, Director of the Financial Policy and Regulation Department, the CBN mandated that DSIBs secure regulatory approval for a successor MD/CEO at least six months before the current leader’s term ends. Additionally, banks must publicly announce the appointment of the successor no later than three months before the incumbent’s departure. The directive, effective immediately, aligns with the CBN’s 2023 Corporate Governance Guidelines, which emphasize the importance of succession planning for leadership continuity.
Strengthening Financial Stability
The CBN highlighted the critical role DSIBs play in Nigeria’s economy due to their size and interconnectedness. These institutions are deemed essential to the financial system, and any leadership disruptions could have widespread economic consequences. By enforcing early succession planning, the CBN seeks to reduce risks associated with abrupt leadership changes, allowing incoming executives sufficient time to prepare and ensuring a smooth transition.
This initiative is part of the CBN’s broader efforts to align Nigeria’s banking sector with global best practices. Proactive leadership transitions are expected to maintain stakeholder confidence, including that of customers, investors, and regulators, while reinforcing the resilience of the banking industry.
Recent Leadership Changes
The directive comes on the heels of recent leadership transitions in the sector. For instance, Access Holdings Plc recently appointed Mr. Innocent Ike as its Group Managing Director/Chief Executive Officer, effective August 29, 2025, following regulatory approval. This followed the resignation of Roosevelt Ogbonna from the company’s board, in compliance with the CBN’s 2023 governance rules limiting HoldCo boards to nine members. The appointment marks a new chapter for Access Holdings under the leadership of Chairman Aigboje Aig-Imoukhuede, who returned after the passing of former Group CEO Herbert Wigwe in 2024.
The CBN’s proactive stance underscores its commitment to fostering stability and preparedness in Nigeria’s banking sector, ensuring that leadership changes do not compromise the industry’s integrity or performance
