Panic as CBN set to retire 1,000 employees, spend N50 billion on payoff

The Central Bank of Nigeria (CBN) is set to lay off around 1,000 employees by the close of 2024 as part of a workforce restructuring plan under Governor Olayemi Cardoso.

This initiative, estimated to cost over N50 billion in severance packages, is intended to realign the bank’s operations.

According to CBN insiders, the affected employees are drawn from various roles across the institution.

A circular issued three weeks ago detailed the Early Exit Package (EEP) program, which allows eligible staff to voluntarily apply for retirement by December 7, with an official exit date of December 31, 2024.

Staff with less than a year of service or unconfirmed appointments are excluded from the program.

The EEP offers both financial and non-financial benefits to encourage participation.

Financial incentives include payouts based on the remaining years of service, capped at 60 months for senior supervisors to deputy managers, 36 months for managers, and 18 months for junior staff.

Non-financial benefits include financial advisory services, entrepreneurial training, subsidized laptop purchases, and extended health coverage for three months post-exit.

An internal source noted that the package appears tailored primarily for senior supervisors to deputy managers, many of whom joined during Governor Godwin Emefiele’s tenure.

For instance, an employee with four years of service could receive between ₦92 million and ₦97 million, while a manager might be entitled to ₦64.5 million, depending on their remaining years of service.

AFRIPOST gathered that 860 employees have already expressed interest in the program, but the process has created significant unease within the organization.

An insider described the atmosphere as “tense,” highlighting widespread uncertainty among staff.

This development follows recent workforce changes at the CBN, including the dismissal of 17 directors appointed under the former governor.

These positions remain vacant, with departments now managed by coordinators.

The recruitment process for replacements excludes deputy directors nearing retirement and warns that submitting multiple applications could result in disqualification.

Some dismissed directors have taken legal action, challenging their terminations as unjust.

Despite the growing concerns, the CBN has not issued a public statement.

When contacted, the Director of Corporate Communications, Hakama Sidi Ali, declined to comment.

The bank’s human resources guidelines stipulate that retirements are typically structured to ensure smooth transitions, with early retirement offered after 10 years of service.

The policy also outlines redundancy measures for involuntary terminations, prioritizing fairness and stakeholder consultation.

This restructuring signals a strategic shift for the CBN, aiming to streamline operations while addressing organizational and economic challenges.