CBN To Retire 1,000 Employees, Spend ₦50 Billion On Payoff

The Central Bank of Nigeria (CBN) is preparing to retire approximately 1,000 employees by the end of the year.
According to findings by Daily Trust, this exercise, reportedly part of a strategic workforce realignment under the leadership of Governor Olayemi Cardoso, is expected to cost over N50 billion in severance packages.

Sources within the CBN disclosed that the affected employees include staff members who have served in various capacities across the bank.

A circular issued three weeks ago revealed that applications for the Early Exit Package (EEP) would remain open until December 7, with an effective exit date of December 31, 2024. Employees with less than one year of service or unconfirmed appointments are exempted from the program.

The EEP, described as a voluntary initiative, offers financial and non-financial incentives to encourage eligible employees to exit the bank.

Financial benefits include compensation 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 lower cadres.

Additional perks include financial planning support, entrepreneurial training, subsidized laptop purchases, and extended healthcare coverage for up to three months post-exit.

“The way they dated the offer, you’ll know that the target is actually from senior supervisors to deputy managers. If you look at it, they’re mostly those that came in within the 9 years of Governor Emefiele.

“For instance, I’ve worked for 4 years in the bank; the package they’re giving me is between N92 million to N97 million.

“Some others have worked up to a manager level and are only entitled to N64.5 million. So, the more time you have to go, the more money they pay you because you know, for them, you don’t have gratuity”, a staff said.

Reports indicate that 860 employees have already applied for the package, but the process has created tension within the bank.

“There is serious tension, serious apprehension. You can imagine the atmosphere. It is terrible.

“As of Friday, there were 860 people so far that have indicated interest in the EEP,” one insider revealed.

The exercise comes amid broader workforce changes at the CBN, which recently disengaged 17 directors under former Governor Godwin Emefiele. These positions remain vacant, with each department now led by coordinators.

The bank’s circular for replacements excludes deputy directors nearing retirement and emphasizes that multiple applications could lead to disqualification. However, some affected directors have challenged their dismissals in court, alleging wrongful termination.

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

According to the CBN’s Human Resources Policies and Procedures Manual, employee retirements are typically structured to foster amicable separations. Early retirement is discretionary and applicable only after 10 years of service. The manual also outlines redundancy measures to manage involuntary terminations caused by economic or structural changes, emphasizing fairness and consultation with relevant stakeholders.

This workforce restructuring marks a significant shift in the CBN’s operational strategy, aiming to streamline its functions while managing the economic and organizational impacts of the changes.