CBN Announces Plans To Retire 1,000 Staff, Allocate ₦50 Billion For Severance Packages

CBN Announces Plans To Retire 1,000 Staff, Allocate ₦50 Billion For Severance PackagesThe Central Bank of Nigeria (CBN) is preparing to retire about 1,000 employees by the end of the year, as part of a strategic workforce restructuring under Governor Olayemi Cardoso’s leadership. This initiative, which is expected to cost over ₦50 billion in severance payouts, was revealed by sources within the bank, according to Daily Trust.....KINDLY READ THE FULL STORY HERE▶

The employees affected by this restructuring have served in various roles across the CBN. A circular issued three weeks ago confirmed that applications for the Early Exit Package (EEP) will be accepted until December 7, with the final exit date set for December 31, 2024. However, those with less than one year of service or unconfirmed appointments are not eligible for the package.

The EEP, described as a voluntary exit program, offers both financial and non-financial incentives to encourage eligible employees to leave the bank. Financial benefits are based on the remaining years of service, with higher payouts for senior staff. Senior supervisors to deputy managers are eligible for up to 60 months of compensation, while managers can receive up to 36 months, and employees in lower cadres are entitled to 18 months. Additional benefits include financial planning support, entrepreneurial training, subsidized laptops, and extended healthcare coverage for three months post-departure.

A staff member explained that the program is largely aimed at senior supervisors and deputy managers, particularly those who joined the CBN during the tenure of former Governor Godwin Emefiele. “For instance, I’ve worked for four years, and my exit package ranges from ₦92 million to ₦97 million. Those at the manager level are entitled to ₦64.5 million,” the employee said, highlighting that the more years worked, the higher the payout.

As of now, 860 employees have applied for the EEP, but the process has caused significant anxiety among staff. “There is serious tension and apprehension. The atmosphere is terrible,” one insider shared.

This restructuring follows the earlier dismissal of 17 directors during former Governor Emefiele’s tenure. These positions remain vacant, and current departmental leadership is now overseen by coordinators. The CBN has not yet filled these roles, and the bank’s circular for replacements excludes deputy directors nearing retirement. Some of the dismissed directors are currently challenging their terminations in court, alleging wrongful dismissal.

The CBN has remained tight-lipped on the matter, with Director of Corporate Communications, Hakama Sidi Ali, declining to comment when approached by Daily Trust.

According to the CBN’s Human Resources Policies and Procedures Manual, retirements are typically structured to ensure smooth separations, with early retirement being an option after 10 years of service. The manual also outlines provisions for involuntary layoffs due to economic or structural changes, ensuring fairness and consultation with stakeholders.

This restructuring marks a major shift in the CBN’s approach, as it seeks to streamline operations and adjust to the changing economic and organizational landscape.

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