The Nigerian House of Representatives has launched an investigation into the Central Bank of Nigeria’s (CBN) planned retirement of over 1,000 staff members and the proposed N50 billion payoff earmarked for the affected employees.

The lawmakers also called on the apex bank to suspend the mass retirement until the investigation is concluded.

The resolution followed a motion presented by Representative Kama Nkemkama during Tuesday’s plenary session. Drawing attention to a report published by Daily Trust on December 2, 2024, Nkemkama raised concerns about the transparency and fairness of the process.

The lawmaker questioned the criteria used for selecting employees for retirement and whether due process, as stipulated by public service guidelines and labor laws, had been followed.

Nkemkama highlighted the potential socio-economic consequences of the move, including increased unemployment, heightened public dissatisfaction, and broader economic instability. He urged his colleagues to ensure the process adheres to legal frameworks while safeguarding public interest.

The House subsequently approved the formation of an ad hoc committee tasked with investigating the mass retirement process. The committee will evaluate the criteria for selecting affected employees, assess the transparency of the N50 billion payoff scheme, and ensure accountability in the CBN’s restructuring initiative.

The Mass Retirement Plan

The mass retirement is part of what the CBN has described as a “strategic realignment of its workforce,” led by its Board of Governors under the leadership of Governor Olayemi Cardoso. This follows a series of workforce reductions in the past year, including the disengagement of 17 directors appointed under former CBN Governor Godwin Emefiele. Notably, those 17 directors have not been replaced, raising questions about the apex bank’s long-term operational capacity.

According to Daily Trust, a circular issued by the CBN three weeks ago invited employees to apply for an Early Exit Package (EEP). The circular stated that the EEP is a voluntary program providing financial and non-financial incentives for early separation, including extended medical care and financial planning support. The application period for the EEP ends on December 7, with an effective exit date of December 31.

The EEP offers financial incentives based on an employee’s cadre and remaining years of service. For senior supervisors to deputy managers, the payout covers the remaining service period, capped at 60 months of gross annual emoluments. For managers, the cap is 36 months, while other cadres are capped at 18 months.

A staff member who spoke to Daily Trust anonymously disclosed, “I’ve worked for four years in the bank, and they’re offering me between N92 million and N97 million. Some managers, despite their higher rank, are only entitled to N64.5 million.”

Another employee described the atmosphere at the CBN as tense, revealing that as of Friday, 860 staff members had already applied for the EEP. “There is serious apprehension. You can imagine the atmosphere—it is terrible,” the employee told Daily Trust.

Staff’s Fight to Stay

The planned retirement has also drawn scrutiny for its perceived bias against certain cadres. Earlier, a group of sacked directors approached the National Industrial Court in Abuja, seeking an injunction to halt their replacements, citing unlawful termination.

The CBN’s Human Resources Policies and Procedures Manual outlines specific guidelines for employee separation, emphasizing fairness, consultation, and the opportunity for appeal. However, the manual also permits early retirement at the management’s discretion, provided the employee has served for at least 10 years.

Silence from the CBN

Despite the growing controversy, the CBN has remained tight-lipped. Attempts by Daily Trust to obtain comments from Hakama Sidi Ali, the CBN’s Director of Corporate Communications, were unsuccessful as calls and text messages went unanswered.

The House’s intervention comes amid growing concerns about Nigeria’s economic and labor market challenges. With unemployment rates already high, the planned retirement could worsen joblessness and public discontent.

Allegations of Political Motivation

Beyond procedural concerns, allegations have surfaced suggesting that the planned retirements are part of Cardoso’s broader strategy to overhaul the bank’s workforce. It is alleged that the move targets employees hired during the tenure of Emefiele, aiming to replace them with staff perceived to be loyal to Cardoso and, by extension, President Bola Tinubu’s administration.

However, observers argue that such a move could undermine the CBN’s independence, turning it into a politically influenced institution rather than an autonomous regulatory body.

The investigation by the House of Representatives is expected to shed light on the opaque nature of the planned restructuring, ensuring that the rights of affected employees are protected and that public trust in the CBN is restored.

Tekedia Capital is excited to announce further investment in Shoptreo, Africa’s largest indigenous B2B fashion ecommerce. Anywhere you are in the world, Shoptreo will help you source shoes, bags and clothes, in bulk, from makers and innovators across Nigeria.

They began in Aba, and have expanded to Ibadan, and on the way to Kano, creating thousands of jobs, and generating $millions in GMV.  But it does not stop there, Shoptreo provides working capital, making it possible for those designers and stylists to have resources to create and produce the products. It is a symphonic funding innovation where you fund your pipelines to deepen competitive positioning in the market. On average, makers within the Shoptreo network outperform peers by 70% on earnings.

I am also happy to announce that Shoptreo (shoptreo.com) will be launching the “Treo” brand in 2025. The Treo brand will unite shoemakers to produce within Treo quality and standards, and through that mechanism, will have economies of scale, and capture more market positioning. The thesis behind this was borrowed from FrieslandCampina, a multi-billion dollar multinational conglomerate established by dairy farmers who came together, and by working together, they improved quality, and deepened scale in Europe, and today own many global markets. Your Peak Milk comes from them. Shoptreo is out to replicate that model in the shoe making space, starting in Aba, Nigeria.

We commend the vision, tenacity and excellence of the Shoptreo team, led by Emmanuel Jacobs and George Uteh,  and are happy to further support them, as they scale opportunities in markets.

We’re Tekedia Capital (capital.tekedia.com), we vote with money where innovators gather to create and build. What are you building?

We Can Use FrieslandCampina’s Model to Fix Aba Shoe and Leather Industry in Nigeria

The Federal Government of Nigeria has signed a landmark Memorandum of Understanding (MoU) with the Republic of France, aiming to enhance and diversify the critical mineral value chain in Nigeria’s solid minerals sector.

This was disclosed in a statement on Sunday by the Special Assistant on Media to the Minister of Solid Minerals Development, Segun Tomori.

He said the MoU signing was done by the Minister of Solid Minerals Development, Dele Alake, on the sidelines of President Bola Tinubu’s visit to France.

“Critical minerals such as copper, lithium, nickel, cobalt, and rare earth elements are essential to clean energy technologies,” the statement read.

“Both countries agreed to collaborate on research, training and Franco-Nigerian students exchanges for knowledge and skills transfer.

“A key component of the MOU is the promotion of sustainable mining activities by executing projects and programmes that reduce the environmental impact of mining on carbon emissions, water consumption, and climate change.”

The agreement, signed during President Bola Tinubu’s visit to France, signals a potential shift in the mining industry, as both nations explore opportunities in the extraction and processing of key minerals like copper, lithium, nickel, cobalt, and rare earth elements—resources essential for clean energy technologies.

This development comes amidst growing speculation that France is seeking to replace its reliance on critical minerals sourced from former colonies in the Sahel region, following strained diplomatic ties with those nations. France has historically depended on Burkina Faso, Niger, Chad, and others for mineral extraction, leveraging long-standing colonial relationships.

However, recent geopolitical upheavals have seen these countries cutting ties with France, forcing the European nation to explore alternative sources of critical minerals to sustain its industrial needs and energy transition goals.

The MoU represents a strategic opportunity for France to secure a new mineral field, but it also raises significant concerns in Nigeria. Many Nigerians worry that the country could become a replacement for France’s former colonies, sparking fears of economic dependency and exploitation.

These concerns are rooted in a historical context where resource-rich African nations often fail to benefit equitably from the extraction of their natural resources, leaving behind environmental degradation and economic disparities.

Nigeria, with its abundant yet underexplored reserves of critical minerals, is viewed as a potential game-changer in the global supply chain for clean energy technologies. The partnership outlined in the MoU aims to attract French investment into Nigeria’s solid minerals sector, providing much-needed capital and expertise to develop the industry. It includes provisions for sustainable mining practices, transparency, and the inclusion of local communities in the developmental process.

However, many are concerned that the collaboration could repeat patterns seen in other African nations where foreign partnerships primarily serve the interests of external stakeholders.

The signing of the MoU also highlights Nigeria’s broader economic ambitions. With the Tinubu administration prioritizing the diversification of the economy beyond oil and gas, the solid minerals sector has been identified as a critical area for growth.

Minister of Solid Minerals Development Dele Alake emphasized that the partnership with France would open Nigeria’s mining sector to global investors while leveraging French expertise to enhance local capacity. Provisions for research collaboration, training, and student exchanges aim to facilitate knowledge transfer and empower Nigerian professionals in the field.

“It also includes the establishment of joint execrative and processing projects through co-financing by public and private entities to diversify and secure the supply of critical minerals and decarbonize energy projects critical to the value chain,” the minister said.

Recent shifts in the Sahel region have seen countries like Niger nationalizing their resources, signaling a broader African pushback against foreign control over critical industries. Observers note that France’s pivot to Nigeria could be driven by the need to mitigate the fallout from losing access to its traditional sources of minerals in West Africa.

Alake said both nations have pledged to adopt international best practices in the execution of projects, with a focus on reducing environmental impacts such as carbon emissions and water consumption. Additionally, the partnership seeks to ensure that local communities benefit from mining activities, with mechanisms to improve living conditions and economic opportunities.

However, despite skepticism, many believe that this agreement could position Nigeria as a key player in the global critical minerals market while potentially redefining its relationship with foreign powers. Yet, for this potential to be realized, the government has been urged to ensure that the benefits of the partnership are felt at all levels of society and that the country’s natural wealth is managed in the interests of its people.