The Central Bank of Nigeria (CBN) has dismissed claims of forced mass retirements as part of efforts to restructure the workforce of the apex bank.
In a statement released on Wednesday, the Acting Director of Corporate Communications, Mrs Hakama Sidi Ali, clarified that its Early Exit Package (EEP) is entirely voluntary and without any negative repercussions for eligible staff.
According to the statement, she stated that the decision to implement the exercise was the outcome of extensive consultations with the Bank’s Joint Consultative Council (JCC), a body representing staff interests.
Mrs Sidi Ali explained that the EEP, a longstanding policy previously accorded to the executive cadre, has now been made available to eligible staff at all levels.
“For some time, staff representatives through the JCC had called on management to approve the early exit package for all cadres. Following these discussions, management decided to meet this popular demand,” she said.
Addressing concerns about potential repercussions for staff who decline the package, Mrs. Sidi Ali reaffirmed management’s commitment to supporting employees’ professional growth and well-being, describing the concerns as unfounded.
She further emphasized that the initiative is an internal corporate matter designed to promote career development for staff.
According to widespread reports, there have been plans to retire approximately 1,000 employees by the end of the year with a payoff estimated to cost over N50 billion.
The mass retirement, which was announced in a circular issued three weeks ago, mandates affected employees to apply for the Early Exit Package (EEP).
The statement allegedly warned employees with less than one year of service or unconfirmed appointments to refrain from applying for the program, noting that the application would remain open until December 7, with an effective exit date of December 31, 2024.
Investors King has reported recently that sources explained that the retirement exercise, which aligns with Governor Cardoso’s strategic plan to restructure the workforce of the apex bank, will gulp over N50 billion depending on the financial benefits of the retirees.
It was also gathered sources within the CBN disclosed that the affected employees include staff members who have served in various capacities across the bank.
It was revealed that the EEP is a voluntary initiative and offers financial and non-financial incentives to encourage eligible employees to exit the bank allowing for effective restructuring of the financial institution’s workforce.
Financial benefits include compensation based on the remaining years of service, capped at 60 months for senior supervisors to deputy managers, 36 months for managers, and 18 months for lower cadres.