The Central Bank of Nigeria (CBN) has directed all Domestic Systemically Important Banks (DSIBs) to publicly disclose the appointment of a new Managing Director/Chief Executive Officer (MD/CEO) no later than three months before the outgoing chief leaves office.
According to a circular issued by the apex bank, DSIBs must also seek regulatory approval for the incoming CEO at least six months before the expiration of the current MD/CEO’s tenure. The directive is designed to ensure smooth leadership transitions and prevent disruptions in the management of Nigeria’s major banks.
“This requirement is aimed at minimising disruptions at the top management level, allowing appointees to adequately prepare for their new roles, and mitigating risks associated with abrupt leadership changes,” the CBN stated in the document signed by Rita I. Sike, Director of Financial Policy and Regulation.
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The bank explained that the new policy aligns with Section 2.14 of its 2023 Corporate Governance Guidelines for Commercial, Merchant, Non-Interest, and Payment Service Banks.
The section mandates boards to approve succession plans for MD/CEOs, Executive Directors, and senior management.
Reaffirming the importance of sound succession planning, the CBN emphasised that DSIBs play a crucial role in safeguarding financial system stability. It urged them to adopt effective corporate governance practices to guarantee seamless leadership handovers.
