CBN to retire 1,000 staff, offers ₦50bn payoff

CBN to retire 1,000 staff, offers ₦50bn payoff

Unless there are last-minute changes, the Central Bank of Nigeria (CBN) is set to retire approximately 1,000 employees before the end of the year, investigations have revealed.

Sources at the bank’s headquarters confirmed that the retirement process will cost over ₦50 billion in severance payouts to the affected staff.

In what it has termed a strategic realignment of its workforce, the Central Bank of Nigeria (CBN), under the leadership of Governor Olayemi Cardoso, has committed to reducing its staff numbers.

Over the past 10 months, the CBN has already disengaged several employees, including 17 directors who served under the previous governor, Godwin Emefiele. These 17 director positions have yet to be filled.

A circular released by the CBN three weeks ago, and seen by our reporter, announced that the application period for the Early Exit Package (EEP) is open to all staff levels, with the deadline set for Saturday, December 7.

However, employees who are not yet confirmed or have served less than one year as of the publication date are exempt from the offer, with the effective exit date set for December 31, 2024.

Sources within the bank confirmed that the CBN is targeting the retirement of over 1,000 staff members. At least 860 employees from various departments have already applied for the EEP, according to officials who spoke on condition of anonymity.

The CBN described the EEP as a voluntary program designed to offer eligible employees an incentive for early exit, providing those seeking other career opportunities with a chance to leave the bank. The bank emphasized that once applications are submitted, they are final, and staff cannot withdraw their requests.

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The EEP includes financial incentives based on the employee’s grade and remaining service period. For senior supervisors and deputy managers, the financial package will cover up to 60 months of their current grade’s gross annual emoluments. Managers will receive a package covering up to 36 months, while other staff will be entitled to a maximum of 18 months of their gross annual emoluments.

In addition to financial incentives, the EEP offers non-financial benefits, including a financial planning and entrepreneurial capacity-building program, the option to purchase laptops in line with the bank’s current policy, and extended medical care for up to three months for both the employee and their dependents after the expiration of the bank’s standard three-month medical provision for exited employees.

A staff member who spoke to journalists explained that the target for the Early Exit Package (EEP) primarily seems to focus on senior supervisors and deputy managers, many of whom joined the bank during Governor Emefiele’s 9-year tenure.

“For instance, I’ve worked at the bank for 4 years, and the package I’m being offered ranges from ₦92 million to ₦97 million,” the staff member said. “Others who’ve reached manager level are only being offered ₦64.5 million. The more years you’ve worked, the higher the payout, since there’s no gratuity involved.”

Another employee confirmed that during a webinar held last Friday, the Human Resource Department reiterated the CBN’s target number for the EEP. “As of Friday, 860 people had already shown interest in the package,” the staff member said.

The 17 directors dismissed 10 months ago, along with other retirees, have yet to be replaced. The CBN’s website indicates that each of the 13 departments is led by a coordinator. A circular for replacements specified that deputy directors with two years or less until retirement are ineligible, and applicants must apply for only one position, as multiple applications could result in disqualification.

Following complaints of bias against serving deputy directors, some of them were allegedly invited to apply for vacant positions. A senior staff member commented, “Most of those who should have qualified were affected by the dismissal of the directors.”

Four weeks ago, some of the sacked directors approached the National Industrial Court of Nigeria’s Abuja division, seeking an interlocutory injunction to stop the CBN from replacing them, arguing their terminations were unlawful.

When contacted for comment on the decision to retire about 1,000 staff, the CBN’s Director of Corporate Communication, Hakama Sidi Ali, did not respond to calls or a text message.

According to Section 16.0 of the CBN’s Human Resources Policies and Procedures Manual (HRPPM), titled “Cessation of Employment,” the bank aims to make separations as amicable as possible. Section 16.3.5 specifies that an employee’s Normal Retirement Date should either be when they turn 60 or have completed 35 years of service. Early retirement is considered after at least 10 years of service and is granted at management’s discretion.

The manual also clarifies that redundancy, which involves involuntary and permanent loss of employment due to excess staff, is a formal process that provides employees with the opportunity for early separation. The redundancy process must involve consultation with the Joint Consultative Council, ensuring a fair procedure and the possibility for affected employees to appeal decisions. Redundancy can be initiated for economic, technological, or structural reasons.

Proofreading by Uchechi Ojo, Sub-editor at NeptunePrime.

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