CBN Sacks More Directors as NDIC Moves to Liquidate Other Banks After Heritage Bank

• The Central Bank of Nigeria (CBN) has sacked more directors at its NIRSAL microfinance bank
• The apex bank said the action is an ongoing effort to reduce the staff and embark on organisational restructuring
• The affected staff include the managing director of NIRSAL, the technical director and others

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

The Central Bank of Nigeria (CBN) has terminated the appointments of directors at the Nigeria Incentive-Based Risk Sharing System for Agriculture Lending (NIRSAL).

The dismissed directors include NIRSAL’s managing director and chief executive officer, Abbas Umar Masanawa, executive director of operations, Kennedy Nwaruh and executive director of technical, Olatunde Akande.

CBN gives reasons for the sack

A NIRSAL official reportedly said that the staff are awaiting further clarification on the dismissal's circumstances.

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The apex bank cited an ongoing major organisational and human capital restructuring for the actions.

The CBN Governor, Olayemi Cardoso, approved the latest sack in a series of staff reductions at the bank since he became the governor.

NIRSAL is a wholly owned CBN entity established to redefine and manage agribusiness-related lending and credit risks in Nigeria.

NDIC to liquidate more banks

The development comes after the Nigerian Deposit Insurance Corporation (NDIC) will, at the expiration of its notice filed on August 23, 2024, approach a federal high court to obtain an order to dissolve 87 microfinance banks and primary mortgage banks in Nigeria.

The corporation disclosed this in a notice on its website, stating that by its enabling laws, it will, at the expiration of 30 days from the date of the publication, present an application to the Federal High Court to obtain dissolution orders of  the closed banks and to release/discharge Corporation as Liquidator of the banks

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NDIC gives reasons for liquidation

The agency gave the reasons for the actions, stating that the affected banks were either not located or embarked on self-liquidation.

About 62 affected financial institutions are microfinance banks, and 25 are primary mortgage banks.

Over 100 sacked CBN staff go to court, list demands

Legit.ng earlier reported that the CBN has been dragged to the National Industrial Court (NIC) by over 100 of its staff, who were recently sacked under the bank's re-organisation strategy by President Bola Tinubu's administration.

The sacked staff are demanding payment for damages and entitlements, among others.

President Tinubu announced in his inauguration speech that there would be a thorough house cleaning at the CBN.

Source: Legit.ng