CBN Orders Major Nigerian Banks to Announce New CEOs Six Months Before Handover
Story: written by Myra Chinonso september 17,2025
The Central Bank of Nigeria (CBN) has issued a new directive requiring the country’s biggest banks to secure approval and announce their next chief executive officers at least six months before the outgoing CEO’s tenure ends.
According to a circular signed by Dr. Rita Sike, Director of Financial Policy and Regulation, and published on the apex bank’s website on Tuesday, the rule applies to Domestic Systemically Important Banks (DSIBs)—Nigeria’s largest lenders, often described as “too big to fail.”
The circular states:
“Each DSIB must obtain regulatory approval for the appointment of a successor Managing Director no later than six months before the expiration of the current MD/CEO’s tenure. The appointment must also be made public at least three months before the official exit.”
The CBN explained that the new policy is designed to reduce disruptions in leadership, allow successors to prepare for their roles, and minimize risks associated with sudden management changes.
Why the Policy Matters
DSIBs play a central role in Nigeria’s financial ecosystem due to their size, complexity, and linkages with other banks. Any instability in these institutions could ripple across markets, affect depositors, and destabilize the economy. By tightening succession rules, the CBN aims to strengthen corporate governance, institutional resilience, and investor confidence, while aligning Nigeria with global best practices in risk management.
Recent Leadership Changes Highlight the Need
The directive follows several high-profile leadership transitions in Nigeria’s banking industry.
- Access Holdings recently confirmed Innocent Ike as Managing Director, succeeding Roosevelt Ogbonna in line with governance rules.
- The tragic death of Herbert Wigwe in 2024 led to the return of Aigboje Aig-Imoukhuede as chairman of Access Holdings, underscoring the importance of structured succession planning.
Implications for the Banking Sector
Analysts believe the CBN’s directive will reassure investors and customers in an economy facing high inflation, volatile exchange rates, and rising interest costs. Clear succession timelines also reduce speculation and uncertainty, which in the past have unsettled financial markets.
The directive is part of CBN Governor Olayemi Cardoso’s reform agenda, which includes foreign exchange policy adjustments, recapitalisation measures, and stronger oversight of Nigeria’s banking system.
