The Nigerian House of Representatives has launched an investigation into the Central Bank of Nigeria’s (CBN) planned retirement of over 1,000 staff members and the proposed N50 billion payoff earmarked for the affected employees.
The lawmakers also called on the apex bank to suspend the mass retirement until the investigation is concluded.
The resolution followed a motion presented by Representative Kama Nkemkama during Tuesday’s plenary session. Drawing attention to a report published by Daily Trust on December 2, 2024, Nkemkama raised concerns about the transparency and fairness of the process.
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The lawmaker questioned the criteria used for selecting employees for retirement and whether due process, as stipulated by public service guidelines and labor laws, had been followed.
Nkemkama highlighted the potential socio-economic consequences of the move, including increased unemployment, heightened public dissatisfaction, and broader economic instability. He urged his colleagues to ensure the process adheres to legal frameworks while safeguarding public interest.
The House subsequently approved the formation of an ad hoc committee tasked with investigating the mass retirement process. The committee will evaluate the criteria for selecting affected employees, assess the transparency of the N50 billion payoff scheme, and ensure accountability in the CBN’s restructuring initiative.
The Mass Retirement Plan
The mass retirement is part of what the CBN has described as a “strategic realignment of its workforce,” led by its Board of Governors under the leadership of Governor Olayemi Cardoso. This follows a series of workforce reductions in the past year, including the disengagement of 17 directors appointed under former CBN Governor Godwin Emefiele. Notably, those 17 directors have not been replaced, raising questions about the apex bank’s long-term operational capacity.
According to Daily Trust, a circular issued by the CBN three weeks ago invited employees to apply for an Early Exit Package (EEP). The circular stated that the EEP is a voluntary program providing financial and non-financial incentives for early separation, including extended medical care and financial planning support. The application period for the EEP ends on December 7, with an effective exit date of December 31.
The EEP offers financial incentives based on an employee’s cadre and remaining years of service. For senior supervisors to deputy managers, the payout covers the remaining service period, capped at 60 months of gross annual emoluments. For managers, the cap is 36 months, while other cadres are capped at 18 months.
A staff member who spoke to Daily Trust anonymously disclosed, “I’ve worked for four years in the bank, and they’re offering me between N92 million and N97 million. Some managers, despite their higher rank, are only entitled to N64.5 million.”
Another employee described the atmosphere at the CBN as tense, revealing that as of Friday, 860 staff members had already applied for the EEP. “There is serious apprehension. You can imagine the atmosphere—it is terrible,” the employee told Daily Trust.
Staff’s Fight to Stay
The planned retirement has also drawn scrutiny for its perceived bias against certain cadres. Earlier, a group of sacked directors approached the National Industrial Court in Abuja, seeking an injunction to halt their replacements, citing unlawful termination.
The CBN’s Human Resources Policies and Procedures Manual outlines specific guidelines for employee separation, emphasizing fairness, consultation, and the opportunity for appeal. However, the manual also permits early retirement at the management’s discretion, provided the employee has served for at least 10 years.
Silence from the CBN
Despite the growing controversy, the CBN has remained tight-lipped. Attempts by Daily Trust to obtain comments from Hakama Sidi Ali, the CBN’s Director of Corporate Communications, were unsuccessful as calls and text messages went unanswered.
The House’s intervention comes amid growing concerns about Nigeria’s economic and labor market challenges. With unemployment rates already high, the planned retirement could worsen joblessness and public discontent.
Allegations of Political Motivation
Beyond procedural concerns, allegations have surfaced suggesting that the planned retirements are part of Cardoso’s broader strategy to overhaul the bank’s workforce. It is alleged that the move targets employees hired during the tenure of Emefiele, aiming to replace them with staff perceived to be loyal to Cardoso and, by extension, President Bola Tinubu’s administration.
However, observers argue that such a move could undermine the CBN’s independence, turning it into a politically influenced institution rather than an autonomous regulatory body.
The investigation by the House of Representatives is expected to shed light on the opaque nature of the planned restructuring, ensuring that the rights of affected employees are protected and that public trust in the CBN is restored.