House of Representatives Orders CBN to Suspend Retirement Plan Pending Investigation

The House of Representatives on Tuesday directed the Central Bank of Nigeria (CBN) to suspend its planned retirement of 1,000 employees and the accompanying N50 billion payout until an investigation is concluded.

The House resolved to examine the standards, processes, and legality of the mass retirement, which includes directors and senior management staff. Lawmakers expressed concerns about the transparency and compliance of the decision with labor laws and public service regulations.

To ensure accountability and proper use of the proposed N50 billion payout, an ad hoc committee will be established. This committee will engage with CBN leadership to assess the institutional and economic impact of the retirements on Nigeria’s financial sector.

Kama Nkemkama (LP, Ebonyi), who sponsored the resolution of urgent public importance, urged the Federal Ministry of Labour and Employment to safeguard the rights of affected employees in line with Nigerian labor laws.

During the debate, Nkemkama cited media reports indicating that the CBN planned to retire over 1,000 employees as part of its restructuring efforts under the Acting Governor’s leadership. He noted that the N50 billion compensation package was purportedly designed to ensure equity and fairness but questioned its accountability and oversight.

Nkemkama expressed concerns about the socioeconomic impact of the mass retirement, highlighting the potential for increased unemployment and financial strain on affected employees and their dependents.

He stated, “A decision of this magnitude has socioeconomic ramifications for the people involved, their dependents, and the economy at large. It could lead to increased unemployment and dissatisfaction among the populace.”

Additionally, Nkemkama warned that the proposed N50 billion payout might lack adequate controls, raising the risk of waste and mismanagement of public funds in a critical sector of Nigeria’s financial stability.

The House reiterated the need for transparency and adherence to labor laws in the CBN’s restructuring efforts, emphasizing the broader implications for Nigeria’s financial and economic landscape.