CBN Explains Departure of 1,000 Staff, N50bn Shared
- The CBN has clarified the narratives surrounding the departure of over 1,000 employees from the organisation
- The staff who exited in December 2024 have drawn criticism from notable Nigerians who alleged they were forced
- President Bola Tinubu gave the CBN governor the mandate to clear up the CBN and ensure operational efficiency
Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
The Central Bank of Nigeria (CBN) has clarified that the 1,000 employees who left the institution in December 2024 under a N50 billion severance package did so voluntarily through an early exit programme.
Source: Facebook
CBN Governor Olayemi Cardoso, represented by Deputy Director of Corporate Services Bala Bello, disclosed this during an investigative hearing by the House of Representatives ad-hoc committee on Friday, January 3, 2025.
The committee is probing the circumstances surrounding the staff disengagement and the rationale for the N50 billion severance package provided to the affected individuals, Punch reports.
CBN denies forcing staff to leave organisation
Addressing the committee, Bello explained that the programme was part of the bank's restructuring and reorganisation efforts to optimise performance and adapt to increasing digitisation in banking.
He said:
“The Early Exit Programme, restructuring, and reorganisation are mechanisms through which the performance of an organisation is optimised.
“The initiative ensures the bank’s manpower requirements align with its operational needs, balancing human resource demands with skill and IT requirements.”
According to BusinessDay, Bello cited career stagnation as a driving factor behind the programme, explaining that limited vacancies for senior positions often hinder progression within the organisation.
He explained:
“An organisation functions as a pyramid, with fewer roles at higher levels. Retaining 60 directors for 30 departments would create inefficiency.
“In the past, we’ve had cases where qualified staff faced stagnation due to a lack of vacancies. For instance, you cannot have 60 directors overseeing 30 departments. Such structural inefficiencies are unsustainable."
House committee responds to CBN
During the interaction, Bello Kumo, the chairman of the ad-hoc committee, quizzed the CBN on several issues:
Kumo asked:
“Can you explain the Early Exit Programme, its objectives, timeline, and connection to the restructuring efforts?”
After listening, Kumo assured the committee would objectively evaluate the submissions and report to the House of Representatives.
The CBN's restructuring initiative has sparked widespread debate, with stakeholders questioning the N50 billion severance package amidst Nigeria’s economic challenges.
However, the apex bank maintains that the move is necessary to align its operations with global best practices.
CBN shares expectations for naira, economic growth in 2025
Earlier, Legit.ng reported that the CBN has expressed optimism for the year and promises also forex market transparency and liquidity
Olayemi Cardoso, Governor of the CBN, stated this while briefing the Senate Committee on Banking, Insurance, and Other Financial Institutions.
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President Tinubu hopes the CBN’s leadership will be pivotal in steering the country toward a stable and prosperous future.
Proofreading by Nkem Ikeke, journalist and copy editor at Legit.ng.
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