The Governor of the Central Bank of Nigeria (CBN), Mr. Olayemi Cardoso, clarified the circumstances surrounding the departure of 1,000 staff members from the apex bank, stating that their exit was entirely voluntary and accompanied by full payment of benefits. During an investigative hearing convened by the House of Representatives Ad-hoc Committee, the Governor, represented by Deputy Director of Corporate Service, Mr. Bala Bello, emphasized that the Early Exit Programme (EEP) and related restructuring efforts were designed to enhance efficiency and optimize performance within the bank.
Mr. Cardoso reiterated that the 1,000 staff members were not sacked but opted for voluntary exit under a program aimed at repositioning the institution for greater efficiency. He explained that the EEP was part of broader efforts to realign the bank’s human resources with its operational and technological requirements, ensuring that “round pegs are put in round holes.” According to him, the initiative reflects global trends where digitization has created both opportunities and redundancies in the workforce, necessitating a recalibration of organizational structures to meet contemporary demands.
The Governor noted that the CBN's primary goal was to balance key performance indicators such as manpower, skills, capital, and IT requirements, ensuring that the organization operates at an optimum level. He emphasized that the restructuring was in response to operational challenges and aimed to ensure that the bank remains agile and capable of addressing the complexities of modern financial systems.
Explaining the genesis of the Early Exit Programme, Mr. Bello stated that it originated from internal staff requests, particularly from individuals who felt stagnated in their roles due to limited career progression opportunities. He pointed out that the hierarchical nature of the organization meant that opportunities for upward mobility decreased as one climbed the ladder. This often led to situations where highly qualified and capable individuals found themselves unable to advance due to a lack of vacancies at higher levels.
He elaborated that such stagnation created frustration among employees who had reached the peak of their careers but still harbored aspirations for growth. Many of these individuals expressed a desire to explore other opportunities outside the bank, including setting up their own businesses. In response to these concerns, the CBN extended the EEP to all eligible staff for the first time in its history, providing them with a pathway to exit the organization voluntarily while receiving generous benefits.
The CBN Governor highlighted that the EEP was not mandatory and that no staff member was coerced or pressured into leaving. He underscored the voluntary nature of the program, explaining that the decision to participate was entirely up to the employees. According to him, the program was structured to accommodate staff at all levels, marking a departure from previous exercises that were limited to top-tier management.
Mr. Bello further revealed that the bank’s leadership, including union representatives, worked collaboratively to ensure the program's fairness and transparency. He stated that the initiative was rooted in a desire to address employees' concerns while aligning the bank’s workforce with its strategic objectives. He acknowledged that the program had been met with enthusiasm, with a significant number of staff opting to participate.
He also addressed misconceptions about the program, dismissing claims that it was a veiled attempt to lay off workers. He explained that the restructuring was part of a broader effort to optimize the bank's operations, including reorganization and realignment of roles to meet current and future challenges. He likened the restructuring process to aligning an elephant’s different parts, emphasizing that the ultimate goal was to achieve a coherent and efficient system.
The Governor explained that the EEP offered substantial financial incentives to participants, making it an attractive option for those considering new career paths or entrepreneurial ventures. For instance, some employees who opted for the program have already initiated plans to establish a new bank, leveraging their experience and the support provided by the CBN.
Addressing concerns about the financial implications of the program, Mr. Bello noted that the severance package of N50 billion was a calculated investment in the bank's future. He argued that the cost of retaining staff who no longer fit into the organization's long-term plans could be far greater in terms of inefficiency and lost opportunities.
During the hearing, the Chairman of the Ad-hoc Committee, Hon. Usman Bello Kumo, sought clarification on the objectives of the restructuring and the criteria for determining eligibility for the EEP. He assured stakeholders that the committee’s investigation would be thorough and impartial, with the findings aimed at ensuring accountability and transparency.
Hon. Kumo acknowledged the importance of the restructuring in positioning the CBN for greater efficiency but emphasized the need for due process and adherence to public service regulations. He called on the CBN to provide a detailed explanation of the program's objectives, implementation timeline, and connection to the broader restructuring efforts.
The CBN Governor responded by outlining the strategic vision driving the restructuring. He emphasized that the initiative was not only about managing current challenges but also about preparing the bank for future demands. He reiterated that the program was implemented in a manner that prioritized the welfare and aspirations of the staff while aligning with the bank’s long-term goals.
He also addressed concerns about the potential impact of the staff exits on the bank’s operations, assuring stakeholders that the restructuring was carefully planned to ensure continuity and stability. He stated that the bank had conducted a thorough assessment of its manpower needs and was confident that the new structure would enhance efficiency and effectiveness.
In conclusion, the Governor emphasized that the Early Exit Programme and related restructuring efforts were part of a deliberate strategy to transform the CBN into a more agile and responsive institution. He expressed confidence that the changes would yield significant benefits for both the organization and its stakeholders, paving the way for a more dynamic and efficient Central Bank of Nigeria.
While the restructuring has drawn mixed reactions, the CBN’s leadership remains steadfast in its commitment to optimizing the institution’s performance. The ongoing legislative scrutiny aims to ensure that the process adheres to legal standards and maintains transparency, reflecting the importance of due process in such significant organizational changes.
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