The Central Bank of Nigeria (CBN) has confirmed the voluntary resignation of 1,000 staff members as part of a restructuring process driven by its ongoing adoption of digital technologies.
The move is aimed at streamlining operations and addressing redundancies arising from the transition to a more tech-driven banking model.
This was revealed by Bala Bello, a deputy director representing the CBN Governor, Yemi Cardoso, during an appearance before an ad hoc committee of the House of Representatives probing the initiative.
The committee was established following concerns over the scale of the resignations and the payment of ₦50 billion in compensation to the departing employees.
The committee was set up following concerns over the mass exit and the ₦50 billion compensation payout.
“You are very much aware, chairman, that the entire world is going through a process of digitising its operations. When that happens, a lot of opportunities are created, just as redundancies are equally created,” Bello noted.
The bank’s restructuring efforts have also been influenced by the lack of vacancies at the managerial level, which has caused stagnation for many staff members.
“It gets to the level where you have, for example, 30 departments in the Central Bank. You cannot have 60 directors manning 30 departments. It’s not going to work. So, once those vacancies are filled, some people—despite being highly qualified, very able, and very willing—find there are no vacancies. Then they get to a level where they are stagnated for a period of time,” he said.
Interestingly, some of the exiting staff members have plans to establish their own banks, with assurances of support from the CBN.
“A lot of opportunities are out there. Among the people who have left, there are three or four who are going to set up a bank. We have assured them that if they need the support of the Central Bank, we will provide it,” Bello revealed.
Early exit programme
According to Bello, the programme was not imposed by the bank but was instead a response to popular demand from staff members seeking career alternatives.
“In this particular case, based on popular request—and I came with the union leader of the bank—the staff requested that a similar opportunity should be extended to other categories of staff,” he explained.
- He further emphasised that the process was entirely voluntary, with no coercion or intimidation involved.
“This is the first time in the over 60-year history of the bank that an early exit programme has been extended to all willing staff members. It is not mandatory, and no one is forced to leave,” he added.
- The House of Representatives, under the chairmanship of Bello Kumo, is currently probing the programme to ensure transparency. Kumo assured the CBN of a fair hearing in the investigation.
The CBN’s restructuring efforts under Governor Cardoso have drawn mixed reactions. While the bank has been praised for eradicating multiple exchange rates and clearing some obligations, concerns persist over inflationary pressures and the lack of stability in the foreign exchange market.
What you should know
Cardoso was appointed by President Bola Tinubu in September 2023 following the suspension of Godwin Emefiele.
- The CBN governor, a former Citigroup executive, promised a radical departure from his predecessor and a return to orthodox banking regulations.
- In the past 15 months, the CBN has been praised for clearing some outstanding obligations.
- Also lauded for the eradication of the multiple exchange rates but the lack of stability in the FX market remains a concern.
