CBN’s NIRSAL shake-out takes scalps of CEO, EDs

Business a.m.

The Central Bank of Nigeria (CBN), under which the much criticised Nigeria Incentive-Based Risk Sharing System for Agriculture Lending (NIRSAL) operated, has finally moved in to take the scalps of the managing director, and its executive directors. 

NIRSAL has been a prominent and widely embraced Nigerian agriculture lending platform but became embroiled in controversy with allegations of corruption becoming rampant.

The sacking decision, which was approved by Governor Cardoso, represents the latest development in a series of high-level staff departures at CBN since Cardoso’s appointment last year.

The CBN’s action has reportedly resulted in the dismissal of Abbas Umar Masanawa, managing director and chief executive officer, along with Kennedy Nwaruh, executive director, operations, and Olatunde Akande, executive director, technical.

The decision, communicated to the affected executives on Friday evening (August 30), has apparently sent shockwaves through the ranks of CBN staff, who fear that further layoffs may be forthcoming. This apprehension was confirmed by a NIRSAL official who stated that the remaining employees are awaiting further details on the dismissal of the executive directors.

The CBN’s decision to dismiss the executive directors was communicated through termination letters, citing an ongoing “major organisational and human capital restructuring process” as the reason for their dismissals.

While the specifics of this restructuring still remain unclear, it appears that Governor Cardoso is pursuing a comprehensive overhaul of the apex bank’s personnel and operational structure, in an effort to align the institution with his strategic vision and organisational objectives.

NIRSAL, founded in 2013 as a non-bank financial institution wholly owned by CBN, has been instrumental in providing much-needed financing to the agricultural sector.

With a focus on de-risking the agriculture value chain and facilitating access to funding, NIRSAL has supported over N219 billion in funding for Nigeria’s agricultural sector, contributing significantly to the country’s efforts to enhance food security and stimulate economic growth.

The recent layoffs at NIRSAL are just the latest in a series of high-profile dismissals at CBN, with over 700 staff having been let go over the past year. This wave of terminations includes seven directors and over 90 senior management staff who were dismissed in May, raising serious questions about the direction and implications of CBN’s restructuring process.

The fate of NIRSAL, once heralded as a beacon of hope for Nigeria’s agricultural sector, hangs precariously in the balance. As CBN’s restructuring process continues to unfold, the ripple effects on the organisation’s leadership and its capacity to drive agricultural development have become a growing source of concern for stakeholders across the country.

This is as arguments unfold that the abrupt dismissal of NIRSAL’s top executives, coupled with the lack of clarity on the institution’s future direction, risks undermining the very initiatives that had earned the organisation a reputation as a pivotal player in supporting and de-risking Nigeria’s agricultural sector.