The House of Representatives has opted to investigate the Central Bank of Nigeria’s ‘planned’ retirement of 1,000 staff and the associated N50 billion payoff scheme, directing the apex to suspend any further action until the investigation is completed.

The House, at plenary on Tuesday, said the investigation would evaluate the criteria, process and legality of the planned action by the CBN as well as examine the N50 billion payoff scheme to ensure transparency, accountability, and appropriate use of funds.

This follows a report, which has gone viral, that the CBN was planning to retire about 1,000 of its employees before the end of 2024.

Daily Trust, which published the report, quoted reliable sources at the CBN’s headquarters in Abuja as saying the retirement would gulp over N50 billion in payoff to the affected workers.

The newspaper, quoting the same sources as well as a CBN circular, cited an Early Exit Package (EPP) through which the apex bank is targeting to retire over 1,000 staff members as part of a strategic realignment of its workforce.

The decision by the House to investigate the matter followed a motion of urgent public importance sponsored by Kama Nkemkama (LP, Ebonyi), who urged the Federal Ministry of Labour and Employment to protect the rights of the affected staff according to Nigerian labour laws.

During the debate, Nkemkama drew attention to media reports suggesting that the CBN plans to retire over 1,000 staff members as part of its restructuring under Olayemi Cardoso’s leadership as the apex bank’s governor.

He noted that the CBN had reportedly announced a N50 billion payoff scheme for the affected staff as part of its human resource reorganisation strategy, claiming that the process would ensure fairness and equity.

Nkemkama raised concerns about the sudden mass retirement of over 1,000 employees, including directors and senior management, questioning the selection criteria, transparency, and adherence to due process per public service guidelines and labour laws.

He emphasized that such a major decision has socio-economic implications for the individuals affected, their dependants, and the wider economy, potentially leading to increased unemployment and public discontent.

The lawmaker also warned that the reported N50 billion payoff scheme may lack adequate accountability and oversight, posing risks of mismanagement and misuse of public funds in a sector crucial to Nigeria’s financial stability.

The House of Representatives agreed to set up an ad hoc committee to engage with CBN leadership to assess the potential economic and institutional effects of retirements on Nigeria’s financial sector.