Reps probe CBN’s mass retirement of 1,000 staff, N50bn payoff scheme

The House of Representatives on Tuesday launched an investigation into the circumstances surrounding the mass retirement of approximately 1,000 staff members of the Central Bank of Nigeria (CBN). The House also seeks to ascertain the N50 billion payoff earmarked for the settlement of the disengaged staff members.

The resolution follows the adoption of a motion of urgent public importance sponsored by Mr. Kama Nkemkama, a member of the Labour Party representing Ohaozara/Oncha/Ivo Federal Constituency, Ebonyi State. Nkemkama expressed concerns about the sudden mass retirement, citing critical questions about the criteria for selection, transparency, and adherence to due process.

“The House is concerned about the sudden mass retirement of over 1,000 staff, including directors and senior management,” Nkemkama said. “This development raises critical questions about the criteria for selection, transparency, and adherence to due process in line with public service guidelines and labour laws.”

The lawmaker also highlighted the socio-economic implications of the disengagement, potentially leading to increased unemployment and public dissatisfaction.

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Furthermore, Nkemkama expressed concerns that the N50 billion payoff scheme may lack sufficient accountability and oversight mechanisms, posing risks of mismanagement and abuse of public funds.

“The payoff scheme amounting to N50 billion may lack sufficient accountability and oversight mechanisms, posing risks of mismanagement and abuse of public funds in a sector vital to Nigeria’s financial stability,” Nkemkama added.

The House, presided over by Speaker Tajudeen Abbas, resolved to set up an ad-hoc committee to investigate the mass retirement, examine the N50 billion payoff scheme, and engage the leadership of the CBN to evaluate the potential economic and institutional impact of the mass retirement.

The legislative also urged the apex bank to suspend further implementation of the retirement exercise and associated payoff scheme pending the outcome of the House investigation. The CBN’s decision to retire approximately 1,000 employees is part of its strategic workforce realignment, which aims to streamline the bank’s workforce.

According to reports, the CBN has already disengaged several staff, including 17 directors who served under former Governor Godwin Emefiele. The bank’s Board of Governors, led by Olayemi Cardoso, has been driving this initiative to reduce the workforce and enhance operational efficiency.

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