New Employment Opportunity Looms as CBN Retires 1,000 Employees, Offers N50 Billion in Pay-Off

• The Central Bank of Nigeria is reportedly planning to retire about 1,000 employees and has issued a circular to the effect
• The bank released a circular three weeks ago, saying that the application for an Early Exit Package (EPP) was open for some calibre of employees
• According to the reports, about 860 employees have already retired and could earn close to N100 million for a four-year service

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

Barring any last-minute hitches, the Central Bank of Nigeria (CBN) will retire about 1,000 employees before the end of the year.

Sources at the bank revealed that the retirement would cost the apex bank N50 billion in pay-off to the retiring staffers.

CBN offers staffers early retirement

CBN’s Board of Directors, led by Olayemi Cardoso, has expressed commitment to reducing the workforce as part of a strategic realignment.

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Reports say that in the last 10 months, the bank had disengaged several employees, including 17 directors, who served under the embattled past governor, Godwin Emefiele.

According to the report, the financial institutions regulator released a circular three weeks ago, saying that the application for Early Exit Package (EPP) was open to all calibre of employees and will close on Saturday, December 7, 2024.

Daily Trust reports that the bank exempted employees whose appointments have yet to be confirmed or who have served less than one year.

Findings show that the bank is targeting to retire about 1,000 employees.

The report disclosed that an anonymous source said about 860 staff members have already shown interest and applied for the EPP.

CBN offers juicy incentives for retiring staffers

The bank’s management described the EPP as a voluntary scheme offering eligible employees an incentive to exit early. It warned that the offer cannot be reversed once employees apply.

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The circular stated that financial incentives for senior supervisors to deputy managers would be for the remaining period in the service, up to a maximum of 60 months of the current grade’s gross annual emoluments.

It also disclosed that financial incentives for managers should be for the remaining period in service, up to a maximum of 36 months of the current gross annual emoluments.

The EPP also provides other incentives such as financial planning and entrepreneurial capacity-building programmes, laptop purchases in line with CBN’s current policy and extended medical care for up to three months post-exit.

The report cited sources at the bank as saying that the bank is offering N97 million for a four-year service.

CBN to replace sacked directors

Legit.ng reported that the 17 directors sacked by the bank about ten months ago would be replaced soon.

According to information on the CBN website, on Sunday, December 1, 2024, each of the 13 departments is headed by a coordinator.

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A replacement circular reportedly specified that deputy directors with two years or less to retire are ineligible and that each applicant must apply for only one of the positions listed.

Experts have said the employees' exit would allow the bank to mass-employ them. However, they urged the bank to be fair in the disengagement and employment drive.

CBN clarifies position on converting foreign currency in accounts

Legit.ng earlier reported that the CBN had issued new rules clarifying that commercial, merchant, and non-interest banks (CMNIBs) should let holders convert their internationally tradable foreign currency (ITTC) balances in designated domiciliary accounts into the local currency, the naira, at any time, using the prevailing exchange rate.

The bank disclosed that all conversions must be fully disclosed and reported as part of the bank’s exchange rate requirements.

Legit.ng reported that in February 2024, the apex bank reaffirmed that it would not coerce domiciliary account holders to convert their holdings into naira.

Source: Legit.ng