Onome Amuge
The Central Bank of Nigeria (CBN) witnessed its wage bill more than double to N608.5 billion in 2024, rising 106 per cent year-on-year, even as the institution implemented a major reduction in its workforce.
Financial statements for the year ending December 2024, reviewed by Business a.m., reveal that the wage bill increase occurred despite the dismissal of approximately 1,000 staff members between March and May. The layoffs, conducted in four tranches and attributed to an organisational and human capital restructuring,is seen to have triggered legal challenges and scrutiny over the central bank’s expenditure.
A closer examination of the CBN’s financials shows that costs directly linked to these redundancies, categorised under “other staff expenses,” ballooned 712 per cent to N306.62 billion, up from N37.75 billion in the previous year. The CBN stated that this line item included early exit payments made during the year.
Meanwhile, the mass termination has not been without controversy. Disengaged employees have filed a lawsuit demanding N30 billion in compensation, arguing that the process contravened the CBN Act, which they claim necessitates board approval for substantial staffing decisions. Furthermore, some former staff allege they were denied equitable compensation packages.
CBN Governor Olayemi Cardoso stated earlier this year that staff who departed in December 2024 initiated voluntary disengagement with full benefits. However, the substantial rise in personnel expenses suggests the cost of the broader restructuring exercise outweighed any savings from the reduced headcount.
The unusually elevated wage bill now represents a 51.8 per cent of the CBN’s net operating income for 2024, which stood at N1.173 trillion. This ratio will likely fuel further debate about the central bank’s operational efficiency and cost management in the face of broader economic challenges.
