Business and Economy
CBN to Lay Off 1,000 Workers with N50bn Incentive Package Amid Economic Challenges
By Iyojo Ameh
The Central Bank of Nigeria (CBN) is preparing to lay off 1,000 employees as part of a broader restructuring effort, offering a N50 billion Early Exit Package (EEP) to cushion the transition. This comes even as the 17 directors recently dismissed by the bank are still contesting their termination in court.
According to internal sources, the voluntary EEP is open to employees across all levels except those with less than one year of service. The initiative will provide financial compensation based on the remaining years of service, alongside extended healthcare, financial planning support, and other benefits. Staff have until December 31, 2024, to accept the offer.
A circular from the bank stated that the EEP is aimed at enabling employees to explore new career paths. So far, 860 employees have applied for the program, sparking concerns about the operational and psychological impact of the downsizing on the remaining workforce.
This move follows the high-profile disengagement of 17 directors earlier this year under the leadership of Governor Yemi Cardoso, leaving several critical positions unfilled; which the CBN has yet to provide a clear explanation for the mass layoffs, which come during a period of severe economic hardship for Nigerians due to stringent federal economic reforms.
Experts have raised questions about the timing of the decision, considering the CBN’s central role in stabilizing the nation’s economy. While the bank claims the program offers employees an opportunity for personal growth, critics argue that the layoffs could destabilize an institution already facing internal and external pressures.
Public reactions have been mixed, with some applauding the financial incentives provided in the EEP while others decry the lack of transparency and potential long-term effects on the CBN’s efficiency. Economists warn that the decision could further erode public confidence in the institution amid ongoing fiscal challenges.
As of now, the Yemi Cardoso-led bank has not given any clear reason for this purge other than to say that the program presents an opportunity for employees to explore new career paths.
