In Nigeria, Wonder Never Ends: 1,000 CBN Staff Left Voluntarily, Says Cardoso

In a recent statement, Central Bank Governor Olayemi Cardoso provided clarity regarding the 1,000 staff members who left the bank’s services in December 2024, confirming that their departure was entirely voluntary and not forced. Speaking through the Deputy Director of Corporate Services, Bala Bello, at an investigative hearing, Cardoso explained that this move was part of the bank’s Early Exit Program, designed to optimize organizational efficiency and staff allocation.

Cardoso emphasized that the decision to leave was based on staff requests, particularly those facing career stagnation due to limited opportunities for advancement within the bank. The restructuring efforts, he explained, were intended to better match the manpower requirements of the Central Bank with its evolving operational needs, including technological advancements and digitization.

The voluntary exit program, for the first time in the bank’s 60-year history, was extended beyond the director cadre to include staff at all levels. This unprecedented move allowed staff members who chose to leave to receive their full entitlements, with some even considering new entrepreneurial ventures, including establishing their own banks. The Governor reassured that no staff member was coerced into leaving, stressing that the program was in line with global trends where digitalization often leads to structural changes and redundancies.

However, the large-scale voluntary exit of 1,000 staff members has raised questions, prompting calls for further investigation from Nigerian non-governmental organizations (NGOs), civil society organizations (CSOs), and labour movements. These bodies are urged to examine the implications of such a significant organizational shift, particularly its impact on the Nigerian workforce and the broader economy.

Update headline of the story 

Disengaged CBN Staff Sue Apex Bank Over Mass Layoffs, Demand Fair Compensation

A legal confrontation is underway between the Central Bank of Nigeria (CBN) and its former employees following a series of mass dismissals in 2024. The affected staff, represented by Stephen Gana and 32 others, have filed a class-action lawsuit at the National Industrial Court of Nigeria (NICN), Abuja, alleging violations of labor laws, contractual rights, and internal policies.

Allegations of Procedural Violations

The retrenched employees claim that their terminations, described as a “restructuring exercise,” violated Section 36 of the Nigerian Constitution and the CBN’s Human Resources Policies and Procedures Manual (HRPPM). They argue that their rights to consultation and fair hearing were ignored, leaving them with just three days to vacate their positions.

The claimants seek judicial declarations deeming their dismissals null and void. They demand reinstatement, the payment of salaries and benefits from the termination date, and a restraining order against further dismissals without due process. Additionally, they are asking for:

N30 billion in general damages for psychological and reputational harm.

N500 million as compensation for the cost of litigation.

Court Proceedings

On November 20, 2024, Presiding Justice O.A. Obaseki Osaghae urged both parties to pursue an amicable resolution under the National Industrial Court Act (NICA) 2006. The case has been adjourned to January 29, 2025, for a hearing on the CBN’s preliminary objection or to review the progress of settlement discussions.

Background of the Layoffs

Between March and May 2024, 218 employees were terminated across four batches. The layoffs affected 116 executive-level staff, 97 senior-level employees, and five junior-level workers. The CBN attributed the dismissals to a reorganisation strategy aimed at aligning with its new mission and vision.

However, affected employees allege severe financial and emotional distress. Many reported receiving severance payments as low as N5,000 or having their gratuities entirely absorbed by outstanding loans. One employee disclosed that after nearly a decade of service, they were left owing the bank over N30 million due to loan deductions.

CBN’s Defence

The CBN maintains that the terminations were lawful and in line with employment contracts. It claims to have paid affected staff three months’ salary in lieu of notice and asserts that the dismissals were unrelated to misconduct. In its preliminary objection, the CBN also questions the jurisdiction of the NICN over the case.

Broader Implications

The case underscores growing concerns about labor practices and corporate restructuring in Nigeria’s public sector. Observers await the court’s decision, which could set a significant precedent for employee rights and organisational restructuring policies.

For more updates on this case and related stories, stay connected to Premium Times.