Abuja, Nigeria – The Central Bank of Nigeria (CBN) is set to retire approximately 1,000 employees by the end of the year, with over N50 billion earmarked as severance packages for affected staff.
This development, described as a “strategic realignment” of the workforce, comes as part of the bank’s restructuring efforts under the leadership of its Board of Governors, headed by Olayemi Cardoso.
Sources at the apex bank revealed that the mass retirement will involve staff across various cadres, with 860 employees already applying for the bank’s Early Exit Package (EEP), a voluntary programme offering financial and non-financial incentives for early retirement.
Details of the Early Exit Package
In a circular released three weeks ago, the CBN opened applications for the EEP to all confirmed employees, excluding those with less than one year of service. The effective date for the exit is set for December 31, 2024.
The EEP offers financial incentives based on remaining years of service. Senior supervisors to deputy managers are entitled to a maximum of 60 months’ gross annual salary, while managers may receive up to 36 months’ salary. Other cadres are entitled to a maximum of 18 months’ gross annual salary.
Non-financial benefits include a financial planning and entrepreneurship programme, laptop purchase support, and extended medical care for three months after the exit date.
Employee Reactions
The announcement has reportedly created tension among staff. An employee, who requested anonymity, disclosed that the CBN has primarily targeted employees recruited during the tenure of the former governor, Godwin Emefiele.
“For instance, I’ve worked for four years, and they’re offering me between N92 million and N97 million,” the staff member said. “Others at the manager level are entitled to N64.5 million. The more years you have left, the higher the payout, as the CBN does not provide gratuity.”
During a recent webinar, the CBN’s Human Resources Department reiterated its intention to achieve the targeted number of exits through the EEP.
Sacked Directors Yet to Be Replaced
Meanwhile, 17 directors dismissed earlier this year have not been replaced. Current information on the CBN’s website shows that 13 departments are now led by coordinators. Sources revealed that some eligible deputy directors have been invited to apply for the vacant positions, though a circular stipulated that only deputy directors with more than two years before retirement may apply.
In October, some of the dismissed directors filed a lawsuit at the National Industrial Court of Nigeria, seeking an injunction to prevent their positions from being filled, claiming their termination was unlawful.
CBN Policies on Retirement
According to the CBN’s Human Resources Policies and Procedures Manual, the standard retirement age is 60 years or after 35 years of service. Early retirement is permitted after 10 years of service but requires management approval. The manual also outlines provisions for redundancy, emphasizing fair processes and consultation with the Joint Consultative Council to ensure employees are treated equitably.
Efforts to reach the CBN’s Director of Corporate Communications, Hakama Sidi Ali, for comments were unsuccessful, as calls and messages went unanswered.
Strategic Workforce Restructuring
The CBN maintains that the retirements align with its workforce restructuring strategy. While the move has sparked concerns among employees, the apex bank emphasizes its commitment to ensuring an amicable process and providing incentives for staff seeking alternative career opportunities.
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