Lagos, Nigeria – September 16, 2025
The Central Bank of Nigeria (CBN) has issued a directive requiring all Domestic Systemically Important Banks (D-SIBs) to implement succession planning for their Managing Directors (MDs) and Chief Executive Officers (CEOs). This policy aims to enhance corporate governance and ensure the stability of the Nigerian banking sector.
According to a circular dated February 24, 2023, signed by Mr. Chibuzo A. Efobi, Director of the Financial Policy and Regulation Department, banks must obtain regulatory approval for a successor MD/CEO no later than six months before the expiration of the incumbent’s tenure. This measure is designed to minimize leadership disruptions that could potentially destabilize the financial system.
The CBN’s initiative underscores its commitment to fostering strong governance practices within the banking industry, thereby contributing to the overall resilience of Nigeria’s financial infrastructure.
