CBN Plans to Retire 1,000 Staff

CBN Plans to Retire 1,000 Staff, Allocates N50 Billion for Compensation

 

In a strategic move to realign its workforce, the Central Bank of Nigeria (CBN) is set to retire approximately 1,000 employees by the end of the year. According to reports by Daily Trust, the initiative will cost the apex bank over N50 billion in severance payouts to affected workers.

 

A Workforce Reshuffle Under New Leadership

 

The workforce reduction aligns with the CBN Board of Governors’ strategic realignment agenda, spearheaded by Governor Olayemi Cardoso. Over the past 10 months, the bank has disengaged numerous staff members, including 17 directors who served under former Governor Godwin Emefiele. These positions remain unfilled, further signaling a significant overhaul of the institution’s leadership structure.

 

Early Exit Package (EEP) Unveiled

 

Three weeks ago, the CBN issued a circular inviting employees to apply for an Early Exit Package (EEP). This voluntary program allows eligible staff members to exit the bank with financial and non-financial incentives. However, it excludes employees who have been with the bank for less than a year or are yet to be confirmed. The deadline for applications is December 7, 2024, with exits effective December 31, 2024.

 

The EEP offers financial incentives based on the employee’s grade and remaining service years:

– Senior Supervisors to Deputy Managers: Up to 60 months of gross annual emoluments.

– Managers: Up to 36 months of gross annual emoluments.

– All Other Cadres: Up to 18 months of gross annual emoluments.

 

Non-financial benefits include extended medical care for three months, financial planning training, and entrepreneurial capacity-building programs. Staff are also eligible to purchase laptops under the bank’s policy.

 

High Uptake and Tension Among Employees

 

Reports indicate that at least 860 employees have already applied for the EEP. However, the announcement has created tension within the bank, with many employees expressing anxiety over the program’s implications.

 

One staff member, speaking anonymously, noted the financial incentive’s appeal but highlighted its focus on mid-level staff hired during Emefiele’s tenure.

 

“I’ve worked here for four years, and the package I’m getting is between N92 million and N97 million. Others at the manager level are receiving about N64.5 million. The more years you have left, the better the package.”

 

Another staff member described the tense atmosphere, particularly after a webinar held by the Human Resources Department to address concerns.

 

“There’s serious apprehension. You can feel the tension. It’s a terrible atmosphere.”

 

Leadership Gaps and Legal Battles

 

Despite the planned retirements, the CBN has yet to replace the 17 directors dismissed earlier this year. Currently, the bank’s 13 departments are led by coordinators, with a circular outlining the conditions for replacements. Notably, deputy directors with two years or less until retirement are ineligible for promotion.

 

This restructuring has sparked controversy. Some deputy directors initially excluded from consideration were reportedly invited to apply following backlash. Meanwhile, several of the dismissed directors have filed a lawsuit at the National Industrial Court in Abuja, challenging the legality of their termination and seeking to block the appointment of replacements.

 

Broader Implications for the CBN

 

The workforce reduction reflects broader efforts to streamline the CBN under its new leadership. However, it also raises questions about staff morale, continuity, and the bank’s ability to maintain operational stability amid significant internal changes.

 

As the December 7 deadline for the EEP approaches, the bank’s handling of this restructuring will likely set the tone for its future workforce policies and overall efficiency. For now, the initiative remains a delicate balancing act between cost-cutting measures and maintaining institutional integrity.