CBN Mandates Nigerian Banks to Announce CEO Successor Three Months Before Exit

The Central Bank of Nigeria (CBN) has directed banks, particularly the Domestic Systemically Important Banks (DSIBs), to announce the appointment of a new Managing Director/CEO at least three months before the current CEO's scheduled exit. This move aims to facilitate seamless leadership transitions and reduce potential disruptions in key financial institutions.

The directive also requires obtaining regulatory approval for the successor's appointment no later than six months before the incumbent's tenure ends. Rita Sike, the Director of Financial Policy and Regulation Department at CBN, signed the circular emphasizing the importance of sound corporate governance practices in ensuring effective succession planning in banks.