What was intended to be a (CBN) voluntary early exit package for long-serving staff soon became a lightning rod for accusations of regional bias and opaque administration.

It all started with media reports, notably from Daily Trust, suggesting that the CBN was planning to retire around 1,000 employees with a ₦50 billion payout.

Whispers quickly followed, claims that the move disproportionately affected employees from northern Nigeria, raising alarm bells among interest groups and lawmakers.

From Restructuring to Rumour

At the heart of the restructuring was the Central Bank’s effort to streamline its workforce, an initiative launched under the leadership of Governor Olayemi Cardoso.

But as details of the severance offer leaked to the public, concerns mounted that the voluntary exits were neither transparent nor equitable.

Some staff reportedly received payouts exceeding ₦90 million, stoking further questions about who was selected, who wasn’t, and why.

What began as a restructuring exercise soon took a different tone, fuelled by public commentary, political concerns, and ethnic interpretations.

CBN Breaks its Silence

Amid rising tension, the CBN moved to set the record straight.

In a formal response, Hakama Sidi Ali, the Bank’s acting director of Corporate Communications, said the exercise was not targeted at any region or ethnic group.

She emphasized that the programme was voluntary, extended to all staff regardless of cadre or region, and rooted in consultations with the Bank’s internal staff union.

“No one was forced out,” she said, “and the decision to participate was made solely by the staff.”

Legislative Scrutiny and Public Debate

Despite the Bank’s assurances, the matter didn’t die down. Lawmakers in the House of Representatives called for an investigation, demanding clarity on the financial burden of the ₦50 billion severance package and the reported ethnic disproportions.

Meanwhile, former staff who left before the rollout of the broad-based exit offer voiced frustration, saying the policy’s expansion came too late for them, and may have been handled unfairly.

A Lesson in Reform and Communication

At its core, the CBN ’s early exit programme reflects a legitimate desire to restructure and drive efficiency. But the episode underscores a deeper truth about public institutions: how change is communicated can be as impactful as the change itself.

From public perception to political interpretation, the CBN has had to navigate more than just workforce reform, it’s had to reaffirm trust, transparency, and national unity in the face of fast-moving narratives.

As investigations continue, one thing is clear: in Nigeria’s digital and economic transformation journey, public institutions must match reform with clarity, and policy with people-centered communication.

According to the apex bank, the employees were not forced to quit their jobs.

Olayemi Cardoso, the CBN Governor, stated this on Friday in Abuja at an investigative hearing of the House of Representatives’ ad-hoc committee probing the circumstances leading to the exit of the staff members and how the sum of N50bn severance package for the affected persons was arrived at.

Cardoso added that the affected persons opted to disengage through the voluntary Early Exit Program with payment of full benefits.

Represented by Deputy Director, Corporate Service of the CBN, Bala Bello, Cardoso explained. “The Early Exit Program, Restructuring and  Re-organization “are basically ways and means through which the performance of an organization is optimized by ensuring that round pegs are put in right holes. The manpower requirement of the bank is actually met.

“I’m very happy to mention that the early exit program of the CBN is 100 per cent voluntary. It’s not mandatory. Nobody has been asked to leave, and nobody has been forced to leave. It’s a completely voluntary programme that has been put in place.”

He also noted that the exercise was not restricted to government agencies alone, saying, “I believe several organisations across the world, and even within this country, both in terms of the private sector and the public sector, are undertaking similar exercises.”

Continuing, Cardoso said, “In the past, we had instances in which cases of stagnation and lack of career progression appear. In an organisation, you’ve got a pyramid where from each level to the next level, the gap keeps narrowing. If not, you are going to have a quasi-organisation, an inverted pyramid.

“It gets to the level where you have, for example, 30 departments in the Central Bank. You cannot have 60 directors manning 30 departments. It’s not going to work.

“Once those vacancies are filled, it gets to a level where some people, even though they are very qualified, able, and willing, but the vacancies are not there. And then they got to a level where they are stagnated for a period of time.”

Speaking earlier, the chairman of the committee, Bello Kumo, noted that the committee’s responsibility was to submit the report to the House.

[Source: Punchng]

The CBN had mandated commercial banks in the country to shore up their capital base over the next two years.

Cardoso, in his remarks at the second International Financial Inclusion Conference 2024 in Lagos, noted that, almost one-third of Nigerians not being able to access capital to grow their businesses, secure savings for the future, or obtain insurance to mitigate risks remains a critical challenge for the country.

Stating that the CBN, alongside the bankers committee and other stakeholders in the financial industry remain committed to ensuring that the country achieves a 95 per cent financial inclusion, Cardoso said, the apex bank is keen on ensuring its Financial Inclusion policies and initiatives address the peculiar access to finance barriers for underserved populations, particularly Women, Youth, and MSMEs.

Cardoso, while emphasising that financial inclusion is foundational to Nigeria’s sustainable economic development, said, CBN had introduced new minimum capital requirements for banks as part of efforts to deepen financial inclusion.

“This strategic move ensures that banks are well-capitalised, enabling them to take on greater risks, particularly in underserved markets. With stronger capital bases, banks can provide more loans and financial products to MSMEs, rural communities, and other vulnerable segments that have previously struggled to access formal financial services,” he said.

He stated further that, aside from strengthening financial stability, the recapitalisation of the banking industry serves as a catalyst for inclusive growth.

“By enabling banks to extend more credit to MSMEs, we enhance job creation and productivity. Furthermore, with increased capital, banks can invest in technology and innovation, crucial for driving digital financial services such as mobile money and agent banking.

“These technologies are key to breaking down geographic and economic barriers, bringing financial services to even the most remote areas. Financial inclusion has the potential to unlock significant economic growth, particularly through the empowerment of small and medium-sized enterprises (SMEs), women and other vulnerable segments of the population.

“SMEs are responsible for over 80 per cent of employment in Nigeria, yet many struggle to access the credit needed for expansion. Financial inclusion for SMEs is essential to unlock the full potential of this sector, and the Nigerian government remains committed to supporting these enterprises.

“Similarly, women play a critical role in driving inclusive growth. Research shows that when women are financially empowered, they reinvest in their families and communities, creating broader socio-economic benefits. Yet, women in Nigeria are disproportionately excluded from the formal financial system.

“The Central Bank of Nigeria has made significant strides in promoting financial inclusion for Women and youth, particularly through Frameworks aimed at closing gender gaps and regulatory support for digital platforms that offer easier access to financial services for these vulnerable groups. With programs aimed at financial literacy, the CBN is also empowering young Nigerians to become financially independent, fostering entrepreneurship, and driving economic growth across the country” he said.

On his part, CBN’s deputy governor, Financial System Stability, Philip Ikeazor, whilst pointing out that financial exclusion rate in the country had dropped from 46.3 per cent in 2010 to 26 per cent as of 2023, noted that “despite this progress, there are over 28 million Nigerians who still have no access to formal financial products and services and certain challenges persist, particularly in ensuring financial access for five most excluded demographics: women, youth, rural communities, Northern Nigeria and Micro, Small and Medium Enterprises (MSMEs).”

The Association of Bureaux de Change Operators of Nigeria (ABCON), who disclosed this on Monday, applauded the decision of the Central Bank of Nigeria (CBN) led by Olayemi Cardoso to recall BDCs into the mainstream FX market, describing it as a major factor in ongoing exchange rate stability.

Dr. Aminu Gwadabe, ABCON’s president, was full of gratitude to the CBN and other related agencies for the recognition of BDCs as the third leg of the foreign exchange market and an effective exchange rate trans­mission mechanism in forex management. ­

He said,

“The reconsideration of the BDCs into the mainstream foreign exchange market has not only demystified illegal econom­ic behaviours such as hoarding, rent seeking, round tripping and FX holding position, but also led to the emergence of exchange rate convergence.”

Gwadabe said that the stability in the exchange rate has already started to have a positive impact on the prices of goods and services.

He noted that for instance the price for international school fees has dropped by 15 percent; cost of medical tourism reduced by 20 percent and prices of air fares for local and international trips dipped by 25 percent.

“The current developments in the foreign exchange market has started reining in inflation as prices of most necessities are becoming relatively lower in the market. In a more serious note, the positive impacts include also heightened confidence of the public in the local currency as it eliminates currency substitution behaviour which hitherto added pressure on our local currency”, he added.

Gwadabe said the success sto­ry is unending as naira traded at N1,255/$ on Saturday, even lower than N1,269.765 rates BDCs were advised to sell.

Describing the ongoing mar­ket development as revolutionary, Gwadabe said stable naira will attract more foreign portfolio in­flows to the economy.

He said the naira has appre­ciated from February low of N1,915/$ to N1,255/$, representing N660 gain, which is significant by all measures.

He said the gains of the CBN under Cardoso to recognise the power of BDCs in securing stable exchange rate cannot be overem­phasised.

He also said that previous practice where people took dol­lars from Nigeria to Dubai for hoarding has ceased.

Gwadabe said that today, fol­lowing the rapid recovery of the naira against the dollar, the pur­chase of dollars in Dubai is cheap­er than in Nigeria and therefore created business opportunities for dollar inflows rather than outflows to the economy.

Going forward, he said that prospects for forex earnings are promising, with foreign portfolio investments on the rise and over $1.5 billion inflows few days after the Monetary Policy Committee (MPC) raised interest rate by 200 basis points.

He said increases in foreign exchange inflows into the econo­my through the CBN’s monetary instruments is helping to boost foreign reserve accretion and gives the apex bank the necessary power to continue to defend the local currency.

“It is our view that the collab­oration between the BDCs, CBN, National Security Adviser, the Economic and Financial Crimes Commission (EFCC), as well as support from the Presidency helped in creating the opportu­nity for building the foundation of this achievement. Overall, the combination of these actions have induced an atmosphere of public calmness, confidence, hopes and liquidity in the mar­kets.

“We therefore call on the CBN to continue to calibrate the existing relationship between the BDCs and the apex bank to sus­tain the success story,” he advised.

On the recent reforms in the financial industry, the ABCON chief reiterated the resolve of ABCON to continually collabo­rate with the CBN in carrying all its members along in achieving a win-win situation.

He said this is expected to help in safeguarding investments, har­nessing skills of BDC operators and boosting employment within the financial services sector.

He dropped this hint in response to the questions on the activities of cryptocurrency platforms like Binance, especially how the apex bank thought about balancing currency manipulation and not stifling innovation.

In response, Cardoso said that because the CBN has a responsibility to protect Nigerians (and investment community) it has been collaborating with other arms of the government to confirm some of their fears.

A check by Techeconomy indicated that, in a concerted effort to safeguard Nigeria’s foreign exchange market and combat speculative activities, the Office of the National Security Adviser (ONSA) and the Central Bank of Nigeria joined forces to tackle challenges in the market.

However, the effectiveness of these initiatives is being undermined by the activities of forex market speculators, both domestic and international, operating through various channels, thereby exacerbating the depreciation of the Nigerian naira and contributing to inflation and economic instability.

The CBN had initiated a comprehensive strategy to enhance liquidity in the forex market, including unifying the market segments, clearing outstanding forex obligations, introducing new operational mechanisms for Bureau De Change operators, enforcing the Net Open Position limit for commercial banks, and adjusting the remunerable Standing Deposit Facility cap.

Again, to reduce the pressure on the naira, the Economic and Financial Crimes Commission (EFCC) also raised a 7,000-man special task force across its 14 zonal commands to clamp down on dollar racketeers.

Yet, recent intelligence reports have highlighted continued illicit activities within the Nigerian foreign exchange market, causing ONSA and CBN to embark on a collaborative approach to tackle these infractions.

The partnership involved a coordinated effort with key law enforcement agencies, including the Nigeria Police Force (NPF), the Economic and Financial Crimes Commission (EFCC), the Nigeria Customs Service, and the Nigeria Financial Intelligence Unit (NFIU).

The primary objective of which is to systematically identify, thoroughly investigate and appropriately penalize individuals and organizations involved in wrongful activities within the Forex market.

By leveraging the expertise of these agencies, we aim to deter malicious practices, protect investor interests, and promote sustainable economic growth.

Speaking further, the CBN Boss noted “they are concerned that certain practices go on that indicate illicit flows going through a number of these entities and suspicious flows at best.

In the case of Binance, in the last one year alone, $26 billion has passed through Binance Nigeria from sources and users who we cannot adequately identify”

He however assured Nigerians that they are “determined” to do anything it takes to take charge of their market and not allow others to “manipulate our market in a way that ends up distortionary and sub-optimizes for all Nigerians”, which he said will not be accepted, as they will do their best to ensure the “infractions” do not take place.

In response, Binance stated that it has taken some actions to adjust trading on its platform by Nigerians to address what it described as an unusual currency movement.

While many Nigerians have been complaining of facing restrictions with buying and selling USDT on the platform since Tuesday, Binance said its action was “to protect users and prevent any abuse.”

Binance also distanced itself from the forex debacle in Nigeria saying its platform is “market-driven and not intended to be a proxy for currency pricing in Nigeria.”

In a presentation to the House of Representatives on Tuesday, Cardoso highlighted that an alarming $40 billion has been expended on foreign education and healthcare, a factor contributing to the devaluation of the Naira, which has plummeted to over N1,400 in the official market.

Cardoso said:

“Given this data, it is crucial to highlight that between 2010 and 2020, foreign educational expenses amounted to a substantial $28.65 billion, as for the CBN publicly available balance of payment statistics.

“Similarly, medical treatment abroad has entered around $11bn in costs during the same period. Consequently, over the past decade, foreign exchange demand for education and healthcare has totaled nearly $40 billion.

“Notably, this amount surpasses the total foreign exchange reserves of the CBN. Mitigating a significant portion of this demand could have resulted in a considerably stronger naira today.”

Inflation

On the rising inflation, Cardoso, assured Nigerians that the nation’s inflation rate will drop.

Meanwhile, Nigeria’s inflation has been on the rise for 11 consecutive months, reaching its peak in December 2023, according to the National Bureau of Statistics (NBS).

The annual inflation rate rose to 28.92 per cent in December from 28.20 per cent in November.

The headline inflation rate showed an increase of 0.72 per cent points when compared to the November 2023 headline inflation rate.

But, the CBN governor specifically told the lawmakers that inflation will reduce to 21%.

Giving an outlook for 2024, he said: “Inflationary pressures are expected to decline in 2024 due to the CBN’s inflationary targeting policy aiming to rein in inflation to 21.4 per cent, aided by improved agricultural productivity and easy global supply chain pressures.

“The Nigerian foreign exchange market is currently facing increased demand pressures causing a continuous decrease in the value of naira.”

Cardoso is one of the top government officials who was summoned by the lower chamber over the state of the economy as well as the free fall of the naira recently.

Others quizzed were the Minister of Finance and Coordinating Minister of the Economy, Wale Edun; Minister of Budget and National Planning, Abubakar Bagudu and the Executive Chairman of the Federal Inland Revenue Service (FIRS) Zacch Adedeji.

Cardoso explained that the apex bank has unveiled measures to address the persistent decline in the value of the naira.

According to him, the economy must earn through export to boost the naira He said the CBN plans to instill Confidence through stability in consumer prices and the foreign exchange market.

He believes that the policy measures of the bank are expected to impact positively on inflation.

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Cardoso is optimism about the inflation reduction amid the rising prices of foodstuff and other commodities in the market.

Nigeria’s inflation has been on the rise for 11 consecutive months, reaching its peak in December 2023, according to the National Bureau of Statistics (NBS).

The annual inflation rate rose to 28.92 per cent in December from 28.20 per cent in November.

The headline inflation rate showed an increase of 0.72 per cent points when compared to the November 2023 headline inflation rate.

But briefing lawmakers at the sectoral debate on the economy before the House of Representatives, the CBN governor specifically said inflation will reduce to 21%.

Giving an outlook for 2024, he said: “Inflationary pressures are expected to decline in 2024 due to the CBN’s inflationary targeting policy aiming to rein in inflation to 21.4 per cent, aided by improved agricultural productivity and easy global supply chain pressures.

“The Nigerian foreign exchange market is currently facing increased demand pressures causing a continuous decrease in the value of naira.”

Cardoso is one of the top government officials who was summoned by the lower chamber over the state of the economy as well as the free fall of the naira recently.

Others quizzed were the Minister of Finance and Coordinating Minister of the Economy, Wale Edun; Minister of Budget and National Planning, Abubakar Bagudu and the Executive Chairman of the Federal Inland Revenue Service (FIRS) Zacch Adedeji.

Cardoso explained that the apex bank has unveiled measures to address the persistent decline in the value of the naira.

According to him, the economy must earn through export to boost the naira He said the CBN plans to instill Confidence through stability in consumer prices and the foreign exchange market.

He believes that the policy measures of the bank are expected to impact positively on inflation.