CBN Orders Banks to Announce New CEOs Three Months Ahead

By Aduragbemi Omiyale

To “mitigate risks associated with abrupt changes in leadership,” the Central Bank of Nigeria (CBN) has directed banks operating in the country, especially the Domestic Systemically Important Banks (DSIBs), to ensure they announce successors of their chief executives three months before the expiration of the incumbents.

In a circular dated Tuesday, September 16, 2025, and signed by the Director of Financial Policy and Regulation Department, Ms Rita Sike, the central bank noted request for approval for the successors must be six months earlier.

“Each DSIB is hereby required to ensure it obtains regulatory approval for the appointment of a successor Managing Director (MD/CEO) not later than six months to the expiration of the tenor of the incumbent MD/CEO; and publicly announce the appointment of the successor MD/CEO not later than three months to the planned exit of the tenor of the incumbent MD/CEO,” the notice said.

The apex bank stated that this directive aligns with Section 2.14 of the CBN Corporate Governance Guidelines for commercial, merchant, non-interest, and Payment Service Banks (PSBs) in Nigeria, 2023, which requires boards of commercial, merchant, non-interest, and PSBs to approve succession plans for the MD/CEO, other executive directors and senior management staff.

“This requirement seeks to minimise disruptions at the top management level, enable top management appointees to prepare adequately for the new roles, and generally mitigate risks associated with abrupt changes in leadership,” the statement said.