Home Community Insights CBN Initiates Comprehensive Decongestion Plan, Moves Some Operation to Lagos Office

CBN Initiates Comprehensive Decongestion Plan, Moves Some Operation to Lagos Office

CBN Initiates Comprehensive Decongestion Plan, Moves Some Operation to Lagos Office

In a bid to address safety concerns, reduce health and accident risks, and comply with building regulations, the Central Bank of Nigeria (CBN) has unveiled a comprehensive decongestion plan for its head office in Abuja.

The initiative, outlined in a circular dated January 12, 2023, from the director of the human resources department to all staff, aims to align with building safety standards and enhance office space efficiency.

The circular emphasizes the need for the decongestion plan, citing safety concerns, increased health and accident risks, and the imperative to comply with building regulations. The decision comes in response to repeated warnings from the facility manager and recommendations from the committee on decongestion of the CBN head office building.

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With the current occupancy level surpassing the optimal capacity, the CBN plans to relocate 1,533 staff to other facilities within Abuja, Lagos, and understaffed branches. The move is anticipated to address critical challenges such as safety concerns, reduced efficiency, and potential compromise to the building’s structural integrity.

The decongestion plan is expected to bring about operational and workflow efficiency improvements through strategic alignment, skill distribution, geographical mobility emphasis, and process optimization. Strategic alignment involves redistributing departments and staff based on the functions and objectives of the bank, and optimizing collaboration by placing certain departments in proximity to financial institutions’ head offices, predominantly located in Lagos.

Recognizing the importance of diverse and specialized talents, the CBN aims to distribute technical skills across all branches, addressing shortages at the branch level. Geographical mobility becomes a key focus, emphasizing staff rotations between branches to broaden perspectives, enhance adaptability, and foster collaboration.

The ongoing reorganization is characterized as a targeted effort toward process optimization. Collaboration with Branch Controllers aims to tailor department placement to the unique strengths and needs of each branch, enhancing overall operational effectiveness.

While the CBN emphasizes its commitment to keeping staff informed throughout the process, some employees express skepticism about the motives behind the decongestion plan. According to a source who spoke to The Nation, some politically exposed staff members of the bank view it as “a ploy to shed weight.”

The same source revealed that certain staff, particularly those with political exposure, have either resigned or been relocated to locations outside Abuja. The source states, “More are already considering throwing in the towel because they cannot function well outside Abuja or Lagos.”

A notable aspect of the decongestion exercise is the transfer of about 80 percent of the staff of the Banking Supervision Department and the Payment System Management Department (PSMD) to Lagos. The official rationale behind these transfers is that the head offices of the banks these departments supervise are located in Lagos.

The PSMD, responsible for overseeing various entities involved in the payment system, including commercial banks, microfinance banks, payment service providers, mobile money operators, payment terminal service providers, payment solution service providers, and electronic money issuers, are particularly affected.

Furthermore, the Director of the Medical Services Department has been moved to the FSS Department in Maitama, a move that has raised questions among CBN staff about the rationale behind this particular relocation.

The circular, addressing the concerns of the staff, states, “This is to notify all staff members at the CBN Head Office that we have initiated a decongestion action plan designed to optimize the operational environment of the Bank. This initiative aims to ensure compliance with building safety standards and enhance the efficient utilization of our office space.”

The circular outlines the overcrowding challenges, including safety concerns, reduced efficiency, and potential compromise of the building’s structural integrity. It states, “Our current occupancy level of 4,233 significantly exceeds the optimal capacity of 2,700 designed for the Head Office building.”

Decongestion is expected to lead to several positive outcomes, as outlined in the circular. These include improving health and safety, enhancing productivity and collaboration, extending the lifespan of the Head Office building, optimizing resources, reducing costs, and creating a more comfortable and enjoyable work environment for everyone.

The circular reads in full:
“This is to notify all staff members at the CBN Head Office that we have initiated a decongestion action plan designed to optimize the operational environment of the Bank. This initiative aims to ensure compliance with building safety standards and enhance the efficient utilization of our office space.

“This action is necessitated by several factors, including the need to align the Bank’s structure with its functions and objectives, redistribute skills to ensure a more even geographical spread of talent, and comply with building regulations, as indicated by repeated warnings from the Facility Manager, and the findings and recommendations of the Committee on Decongestion of the CBN Head Office Building.

“The action plan focuses on optimizing the utilization of other Bank’s premises. With this plan, 1,533 staff will be moved to other CBN facilities within Abuja, Lagos, and understaffed branches.

“Our current occupancy level of 4,233 significantly exceeds the optimal capacity of 2,700 designed for the Head Office building. This overcrowding poses several critical challenges:

1. Safety Concerns: The building’s infrastructure was designed for a specific number of occupants. Exceeding this capacity has raised safety concerns, increased health and accident risks – and hinders efficient emergency evacuation.

2. Reduced Efficiency: Crowded workspaces are negatively impacting productivity and collaboration. Additionally, overstretched facilities have led to increased maintenance costs.

3. Structural Integrity: The building’s integrity can be compromised by exceeding its designed capacity.

Decongestion will also improve our operational and workflow efficiency in the following ways:

1. Strategic alignment: The decision to redistribute departments and staff is rooted in a strategic approach to align the structure of the Bank with its functions and objectives. Certain departments may be better suited to operate in proximity to Financial Institutions’ head offices, which are predominantly located in Lagos. This strategic alignment ensures optimal collaboration and efficiency.

2. Skill distribution: The concentration of technical skills in the Abuja Head Office has led to a shortage at the branch level. Recognizing the importance of diverse and specialized talents across all branches, the reorganization seeks to redistribute technical skills to ensure that each branch has the necessary expertise for its specific operational needs.

3. Embracing geographical mobility: Given the CBN’s extensive network of branches across the nation, the reorganization also emphasizes the importance of staff rotations between branches. By experiencing new environments, stakeholders, and opportunities, staff members will broaden their perspectives, enhance their adaptability, and foster stronger collaboration across the organization.

4. Process optimization: The ongoing reorganization is not a random shuffle but a targeted effort towards process optimization. By collaborating with Branch Controllers, the Management aims to tailor the placement of departments to the unique strengths and needs of each branch, thereby enhancing overall operational effectiveness.

We understand that change can be unsettling, and we are committed to keeping you informed throughout the process and providing timely updates on the decongestion plan. Affected departments and personnel will receive individual notifications from their respective Directors.

By implementing this plan, we will: Improve the health and safety of all staff; Enhance productivity and collaboration; Extend the lifespan of the Head Office building; Optimize our resources and reduce costs; and create a more comfortable and enjoyable work environment for everyone.

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