CBN Orders Early Succession Planning for Bank CEOs to Safeguard Stability
The Central Bank of Nigeria (CBN) has directed all Domestic Systemically Important Banks (DSIBs) to secure regulatory approval for successor Managing Directors/Chief Executive Officers (MD/CEOs) at least six months before the expiration of the incumbent’s tenure, in a move designed to strengthen corporate governance and safeguard financial system stability.
In a circular signed by the Director of Financial Policy and Regulation, Dr Rita Sike, the apex bank said banks must also make public announcements of successor appointments no later than three months before the outgoing MD/CEO exits office.
The directive takes immediate effect and builds on Section 2.14 of the CBN’s 2023 Corporate Governance Guidelines.
According to the CBN, DSIBs, given their scale and interconnectedness, are too critical to fail, and leadership disruptions could send ripple effects across the economy. The new rules are expected to ensure smoother leadership transitions, minimise risks linked to abrupt exits, and give appointees sufficient time to prepare for their roles.
“This requirement seeks to minimise disruptions at the top management level, enable appointees to prepare adequately for their new roles, and mitigate risks associated with abrupt leadership changes,” the circular stated.
The directive comes barely three weeks after Access Holdings Plc secured approval for the appointment of Mr Innocent Ike as Group Managing Director/CEO, effective August 29, 2025, following the resignation of Roosevelt Ogbonna in line with new governance rules.
The appointment marked a significant leadership reshuffle under Chairman Aigboje Aig-Imoukhuede, who returned to the board after the passing of former Group CEO Herbert Wigwe in 2024.
Analysts note that leadership changes have been gathering pace across the banking sector. Earlier this year, Access Holdings’ long-serving director Seyi Kumapayi exited the board, followed by the recent resignation of Ogbonna from the HoldCo board to comply with the CBN’s new rule limiting HoldCo boards to nine members.
By compelling banks to formalise succession planning well ahead of time, the CBN aims to align Nigerian banking practice with global standards, reinforce investor confidence, and maintain resilience across a financial system that is critical to Africa’s largest economy.
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