By Ayobamiji Komolafe,Tony Chukwunyem

Copyright newtelegraphng

The Central Bank of Nigeria (CBN) has issued a directive requiring all Domestic Systemically Important Banks (D-SIBs) to obtain regulatory approval for the appointment of a successor Managing Director/Chief Executive Officer (MD/CEO) at least six months before the incumbent’s tenure expires.

The directive, released on Tuesday via a circular on the CBN’s website, also mandates that the successor must be publicly announced at least three months before the planned exit of the current MD/CEO.

The banks classified as D-SIBs in Nigeria include Access Bank, Zenith Bank, Guaranty Trust Bank (GTB), United Bank for Africa (UBA), First Bank of Nigeria, and Fidelity Bank. These institutions are designated as systemically important due to their large asset bases, extensive reach, and significant market positions, making them vital to national financial stability.

The CBN circular emphasized that the 2023 Corporate Governance Guidelines for commercial, merchant, non-interest, and payment service banks require boards to approve succession plans for MD/CEOs, other Executive Directors, and senior management staff.

According to the apex bank, this measure aims to minimize disruptions at the top management level, ensure that successors are adequately prepared for their new roles, and mitigate risks associated with abrupt leadership changes.

The directive underscores the CBN’s commitment to strengthening corporate governance and ensuring stability within Nigeria’s banking sector.