CBN restructuring triggers mixed reactions as mass staff resignations unfold

The Central processes and address redundancies, has drawn mixed reactions Bank of Nigeria (CBN) has confirmed the voluntary resignation of 1,000 staff members as part of its restructuring efforts aimed at aligning operations with digital transformation.

The move, designed to streamline processes and address redundancies, has drawn mixed reactions from industry analysts and lawmakers.

The announcement was made by Bala Bello, Deputy Director at the CBN, representing Governor Yemi Cardoso, during an appearance before an ad hoc committee of the House of Representatives.

The committee was established to investigate the large-scale resignations and the disbursement of N50 billion in compensation to the departing employees.

Explaining the rationale, Bello stated, “The entire world is undergoing a process of digitizing operations. This creates numerous opportunities but also results in redundancies. Our restructuring aims to adapt to these changes while addressing operational inefficiencies.”

The restructuring efforts, led by Governor Yemi Cardoso, have drawn both praise and criticism.

Financial analyst Dr. Adeyemi Olaniyan commended the initiative, stating, “Streamlining operations is critical for efficiency in a digital age. The CBN’s decision is forward-thinking.” However, he expressed concerns over the short-term economic impact of the mass resignation.

Economist Dr. Ngozi Okon lamented the potential loss of institutional knowledge. “While the move may address redundancies, losing experienced staff in such numbers could pose challenges to the bank’s stability and operational continuity,” she warned.

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Bello further highlighted the stagnation at the managerial level as a contributing factor.

“For instance, with 30 departments in the Central Bank, you cannot have 60 directors. Many highly qualified and capable staff members found themselves stagnated due to a lack of vacancies,” Bello said.

Interestingly, some departing employees plan to establish their own banks, with the CBN pledging to provide support. “Among those who left, three or four are setting up a bank. We have assured them of our backing,” Bello revealed.

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Bello emphasized that the initiative was not imposed but stemmed from popular demand within the bank. “This is the first time in over 60 years that an early exit programme was extended to all willing staff. It was entirely voluntary, with no coercion or intimidation involved,” he said.

The programme was designed to allow staff members seeking alternative career paths to leave on favorable terms. According to Bello, the process was developed in consultation with the bank’s union leaders, ensuring transparency and fairness.

The House of Representatives committee, chaired by Bello Kumo, is probing the programme to ensure accountability in the N50 billion compensation payout. Kumo assured the CBN of a fair hearing, stating, “Our duty is to ensure transparency and fairness in this process.”

Governor Cardoso, appointed in September 2023 by President Bola Tinubu, has promised to restore orthodox banking practices and revamp the institution.

His tenure has already seen notable milestones, including the elimination of multiple exchange rates and the settlement of certain outstanding obligations. However, concerns persist over inflation and the continued volatility of the foreign exchange market.

As the CBN navigates its digital transformation and restructuring, all eyes remain on its ability to balance modernization with economic stability. The outcome of the House of Representatives’ investigation will likely shape public and expert opinion on the bank’s future trajectory.