The Central Bank of Nigeria (CBN) is set to retire approximately 1,000 employees by the end of 2024 in a strategic workforce realignment spearheaded by Governor Olayemi Cardoso. This exercise, expected to cost over ₦50 billion in severance packages, aims to streamline operations within the bank.
Details of the Early Exit Package (EEP)
A circular issued three weeks ago detailed the bank’s Early Exit Package (EEP), a voluntary program encouraging eligible employees to leave. Applications remain open until December 7, with the retirement date set for December 31, 2024.
Eligible employees will receive financial benefits based on their remaining years of service. Compensation is capped at:
- 60 months for senior supervisors to deputy managers.
- 36 months for managers.
- 18 months for lower cadres.
Additional perks include entrepreneurial training, subsidized laptops, financial planning support, and extended healthcare for up to three months post-exit. Employees with less than one year of service or unconfirmed appointments are not eligible for the program.
Insights from Staff
The initiative appears to target mid-level staff, primarily those hired during former Governor Godwin Emefiele’s tenure. One employee highlighted the program’s payouts:
- “For four years of service, I expect to receive between ₦92 million and ₦97 million.”
- “Managers with longer service might only receive ₦64.5 million, as payouts are higher for those with more years left to retirement.”
Tension Within the CBN
As of last Friday, 860 employees had applied for the EEP, creating significant unease within the bank.
“There’s serious tension and apprehension. The atmosphere is terrible,” an insider revealed.
This restructuring follows the recent disengagement of 17 directors appointed during Emefiele’s tenure. Their positions remain vacant, with department coordinators assuming interim leadership.
Challenges and Legal Actions
The circular for replacements excludes deputy directors nearing retirement and warns that multiple applications could result in disqualification. Meanwhile, some dismissed directors have taken legal action, alleging wrongful termination.
CBN’s HR Policies
The CBN’s HR Policies and Procedures Manual outlines retirement as a collaborative and amicable process. While early retirement is discretionary and available only after 10 years of service, redundancy measures focus on fairness and consultation with stakeholders.
Strategic Shift in Operations
This workforce restructuring represents a significant shift in the CBN’s operational approach, aiming to optimize its functions while mitigating the economic and organizational impact of these changes.
Despite the sweeping changes, the bank’s management has refrained from public comments, with its Director of Corporate Communications, Hakamah Sidi Ali, declining to address the matter.
