The Central Bank of Nigeria (CBN) has reiterated its stance that the 1,000 employees who exited the institution in December 2024 did so voluntarily through an Early Exit Program (EEP). CBN Governor, Olayemi Cardoso, clarified this position at an investigative hearing conducted by the House of Representatives’ ad-hoc committee, emphasizing that no staff member was coerced or forced to leave. The EEP, he explained, was designed to optimize the bank’s performance through restructuring and reorganization, ensuring proper alignment of skills and roles while addressing potential career stagnation. Cardoso emphasized the voluntary nature of the program, stating that it was an option presented to employees and not a mandatory directive. He further contextualized the exercise by pointing out that similar programs are undertaken by organizations globally, both in the public and private sectors, to enhance efficiency and address structural challenges.
The CBN Governor, represented by Deputy Director, Corporate Service, Bala Bello, expounded on the rationale behind the EEP. He highlighted the importance of maintaining an appropriate organizational structure, suggesting that the program addressed potential bottlenecks in career progression. Bello reiterated that participation was entirely voluntary, underscoring that no employee faced any pressure or compulsion to opt for the program. He explained that the initiative aims to address situations where qualified and capable staff members might face stagnation due to limited advancement opportunities within the bank’s hierarchical structure. This clarification aimed to dispel any misconceptions about the nature of the staff departures and reassure stakeholders about the fairness and transparency of the process.
Central to the program’s design is the provision of full benefits to the departing employees. Cardoso emphasized that the EEP offered a comprehensive package to ensure a smooth transition for those choosing to leave the bank. This includes severance payments and other benefits commensurate with their years of service and positions. The CBN’s focus on providing full benefits reflects its commitment to the welfare of its employees, even as it undertakes organizational restructuring. This aspect of the program underscores the bank’s efforts to mitigate the potential impact of the restructuring on the affected staff members.
Furthermore, Cardoso highlighted the prevalence of such programs across various sectors globally, both in public and private institutions. He explained that organizations routinely engage in restructuring and reorganization initiatives to optimize their workforce, streamline operations, and achieve greater efficiency. These exercises often include voluntary exit programs as a means of managing workforce transitions while minimizing disruptions. By situating the CBN’s EEP within this broader context, Cardoso aimed to demonstrate that the bank’s actions are consistent with common practice in organizational management and are not unique or unusual.
The issue of career stagnation within the CBN was also a key point addressed by Cardoso. He explained that the pyramidal structure of organizations inherently limits advancement opportunities at higher levels, creating potential bottlenecks for career progression. The EEP, he argued, provides a viable option for employees who may have reached a plateau in their careers within the bank. This allows them to explore other opportunities while receiving full benefits, thereby mitigating potential frustration and promoting a more dynamic and adaptable workforce within the institution. By addressing this issue of career stagnation, the CBN aims to ensure that its employees have the opportunity to further their career aspirations, whether within the bank or elsewhere.
The House of Representatives’ ad-hoc committee, chaired by Bello Kumo, was tasked with investigating the circumstances surrounding the staff departures and the calculation of the N50 billion severance package. Kumo emphasized the committee’s responsibility to submit a comprehensive report to the House, highlighting the importance of transparency and accountability in the process. The committee’s investigation serves as a mechanism for legislative oversight, ensuring that public institutions like the CBN operate within established guidelines and principles of good governance. This scrutiny also contributes to public confidence in the management of public funds and the integrity of organizational restructuring processes.
