House of Reps to investigate CBN mass retirement, N50bn severance package

On Tuesday, the House of Representatives decided to form an ad hoc committee to look into the reasons for the Central Bank of Nigeria’s 1,000 staff members’ mass retirement.

The House also decided to determine the N50 billion compensation budget for the apex bank’s disengaged employees’ settlement.

The House’s resolution came after a motion of urgent public interest, presented by Mr. Kama Nkemkama, the member for Ohaozara/Oncha/Ivo Federal Constituency, Ebonyi State, was adopted.

According to reports, as part of its planned personnel restructuring, the CBN is getting ready to retire some 1,000 workers.

Nkemkama encouraged his colleagues to rise to the occasion and demonstrate sufficient interest in the motion, which was headlined “Need to investigate the retirement of over 1,000 staff of the Central Bank of Nigeria and the associated N50bn payoff scheme.”

He stated that as part of its human resource reorganization plan, CBN announced a N50 billion payout plan to recompense the impacted employees, which the House has to look into.

“The abrupt mass retirement of more than 1,000 employees, including directors and senior management, is concerning to the House,” he continued.

“Raises critical questions about the criteria for selection, transparency, and adherence to due process in line with public service guidelines and labor laws,” he said of the developing situation.
He emphasized that worker disengagement “has socio-economic implications for the affected individuals, their dependents, and the broader economy, potentially leading to increased unemployment and public dissatisfaction.”

“The N50 billion payoff scheme 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, a member of the Labour Party, continued.

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The House, led by Speaker Tajudeen Abbas, decided to form an ad hoc committee to “investigate the mass retirement of over 1,000 staff of the CBN to ascertain the criteria, process, and legality of the exercise” after the motion was adopted.

“Examine the N50bn payoff scheme to ensure transparency, accountability, and proper utilization of funds,” the House also decided.

Additionally, the Green Chamber decided to “involve the CBN’s leadership in assessing the possible institutional and economic effects of mass retirement on Nigeria’s financial sector.”

In addition, the legislative body urged the apex bank to halt the retirement exercise and related payout plan until the House probe was over.

This is in line with its request that the Federal Ministry of Labor and Employment make sure that the impacted employees’ rights are upheld in accordance with Nigerian labor regulations.