THE Central Bank of Nigeria (CBN) on Wednesday directed banks to publicly announce the appointment of new managing directors/chief executive officers (MDs/CEOs) at least three months before the scheduled exit of the incumbents.

The CBN equally asked banks to obtain regulatory approval for the successors’ appointments not later than six months before the current MDs/CEOs’ tenures end.

In a circular signed by Director of Financial Policy & Regulation Department, CBN, Ms Rita I. Sike, the apex bank said the move was aimed at ensuring seamless leadership transitions and reducing potential disruptions at the top management of key financial institutions.

“This requirement is aimed at minimising disruptions at the top management level, and enabling appointees to adequately prepare for their new roles, and mitigating risks associated with abrupt leadership changes,” Ms Sike said, as quoted by the circular.

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The circular cited Section 2.14 of the CBN Corporate Governance Guidelines for Commercial, Merchant, Non-Interest, and Payment Service Banks in Nigeria (2023) as mandating the boards of such institutions to approve succession plans for their MDs/CEOs, executive directors (EDs), and senior management staff.

“In view of the critical role Domestic Systemically Important Banks (DSIBs) play in maintaining financial system stability, the CBN reiterates the importance of effective succession planning in these institutions,” she noted.

“Accordingly, and in line with sound corporate governance practices, each DSIB is required to: obtain regulatory approval for the appointment of a successor MD/CEO not later than six months before the expiration of the incumbent’s tenure,” she further said.

“They should publicly announce the appointment of the successor MD/CEO not later than three months before the planned exit of the incumbent. You are hereby directed to ensure strict compliance with the above directives.”