Nigeria’s central bank has directed the country’s largest lenders to announce successors to their chief executives at least three months before the incumbents step down, in a move aimed at strengthening corporate governance and ensuring leadership stability.
In a circular dated Sept. 16 and signed by Rita I. Sike, director of the Financial Policy & Regulation Department, the Central Bank of Nigeria (CBN) said Domestic Systemically Important Banks (DSIBs) must also secure regulatory approval for successor appointments six months before the expiration of a current CEO’s tenure.
The regulator said the measure is anchored on its 2023 Corporate Governance Guidelines, which require boards of banks to maintain succession plans for managing directors, executive directors, and senior managers.
“Effective succession planning reduces disruptions, ensures leadership preparedness, and minimizes systemic risks from abrupt changes,” the circular said.
Nigeria’s banking industry has a history of abrupt leadership exits and regulatory interventions, including a 2009 banking crisis that led to the removal of several CEOs. The CBN said the new directive is designed to avoid similar disruptions and protect financial system stability.
DSIBs — which account for a significant share of the country’s banking assets and are considered too big to fail — are seen as critical to Nigeria’s $1 trillion economy target by 2030.
Analysts say the rule will improve transparency, reassure investors and customers, and align Nigeria’s banking oversight with global standards.
The circular concluded with a warning to lenders to ensure “strict compliance.”
