Rule · CBN · 16 Sep 2025 · FPR/DIR/PUB/CIR/001/007
The Central Bank of Nigeria (CBN) has issued a circular to all Domestic Systemically Important Banks (DSIBs) regarding the appointment and announcement of successors to Managing Directors (MD/CEOs). The circular emphasizes the importance of effective succession planning to maintain financial system stability. DSIBs are now required to obtain regulatory approval for successor MD/CEO appointments at least six months before the incumbent's term expires and publicly announce the appointment at least three months before the planned exit.
Central Bank of Nigeria
Financial Policy & Regulation Department
Plot 33, Abubakar Tafawa Balewa Way
Central Business District
P.M.B. 0187 Garki, Abuja - Nigeria.
E-mail: fprd@cbn.gov.ng
Website: www.cbn.gov.ng
Phone: +234 700-225-5226, +234 800-225-5226
FPR/DIR/PUB/CIR/001/007
September 16, 2025
CIRCULAR TO ALL DOMESTIC SYSTEMICALLY IMPORTANT BANKS
APPOINTMENT AND ANNOUNCEMENT OF SUCCESSORS TO MANAGING DIRECTOR
Section 2.14 of the Central Bank of Nigeria (CBN) Corporate Governance Guidelines
for Commercial, Merchant, Non-interest, and Payment Service Banks in Nigeria, 2023, requires boards of commercial, merchant, non-interest, and payment service banks to approve succession plans for their Managing Directors/Chief Executive Officers (MD/CEO), other EDs and senior management staff. This requirement seeks to minimise 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.
In recognition of the critical role that Domestic Systemically Important Banks (DSIBs) play in sustaining financial system stability, the CBN hereby reiterates the importance of effective succession planning in these institutions. Consequently, and in line with good corporate governance practice, 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.
Publicly announce the appointment of the successor MD/CEO not later than
three months to the planned exit of the incumbent MD/CEO.
Please ensure strict compliance.
DR. RITA I. SIKE
DIRECTOR, FINANCIAL POLICY & REGULATION DEPARTMENT
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“Section 2.14 of the Central Bank of Nigeria (CBN) Corporate Governance Guidelines for Commercial, Merchant, Non-interest, and Payment Service Banks in Nigeria, 2023, requires boards...”
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Source: Central Bank of Nigeria — original document · Summary generated with machine assistance and reviewed before publication; the authoritative text is the regulator's original document. How RegAlert works
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