I vote Present here because it is a tough call, especially in Nigeria, where government employees are largely protected in many ways from being fired. Yet, what happened over the last few years in the Central Bank of Nigeria (CBN) are things you would not like to become norms in the nation.

“Over 100 former employees of the Central Bank of Nigeria (CBN) have taken legal action against the bank in the National Industrial Court (NIC), challenging what they describe as their abrupt and unjust termination under a re-organization strategy…The sudden dismissal of over 200 CBN staff in May 2024 has been widely interpreted as a ..targeted purge of employees perceived to be loyal to the former CBN Governor.”

When Ayi Kwei Armah wrote “The Beautyful Ones Are Not Yet Born”, he forgot to give us timelines when they will be born. For all the evils of General Sani Abacha, he ran a better apex bank than whatever we have seen recently.

I was still an undergraduate student, when one evening everyone was jubilating. What happened? Abacha had mandated that all oil contracts must be bidded in Naira. Of course, that was also the beginning of his end, as he touched the reserved global castle! But if you check the data, Abacha kept Naira largely stable!

For these workers, as they say in Nigeria, “go to court”. You are already in court. Good luck, workers. Good luck, CBN.

Over 100 Sacked Central Bank of Nigeria (CBN) Employees Challenge Termination in Court

Over 100 former employees of the Central Bank of Nigeria (CBN) have taken legal action against the bank in the National Industrial Court (NIC), challenging what they describe as their abrupt and unjust termination under a re-organization strategy implemented by the administration of President Bola Tinubu.

The dismissed staff are seeking damages, payment of entitlements, and other compensatory measures.

The sudden dismissal of over 200 CBN staff in May 2024 has been widely interpreted as a strategic move by Cardoso to distance the bank from the policies and personnel of the former governor Godwin Emefiele era. Insiders suggest that the re-organization, which was the official reason given for the mass termination, was a cover for what many perceive as a targeted purge of employees perceived to be loyal to the former CBN Governor.

This narrative is supported by the timing and scope of the dismissals, which affected a broad swathe of staff, many of whom had years of service remaining. For these employees, the abrupt end to their careers has been both a professional and personal shock, leading them to seek legal redress.

Represented by Senior Advocate of Nigeria (SAN) Ola Olanipekun, the dismissed employees have launched over 100 lawsuits against the CBN at the National Industrial Court (NIC). The legal action centers on claims of unfair dismissal, with the plaintiffs arguing that their termination was not only sudden but also lacked the due process and fairness required by law.

Olanipekun, speaking to journalists in Jos, said that the dismissals have caused significant financial and emotional distress to his clients. The lawsuits demand that the CBN pay all owed salaries, allowances, and other entitlements, as well as compensation for the unlawful termination of their employment.

One of the most high-profile cases involves a former employee who had nine years left before his retirement. According to court documents, this individual would have earned a substantial sum in monthly salaries and is now seeking a total of N178 million in lost earnings, in addition to N100 million in general damages for wrongful termination.

The claimants argue that their termination was not based on performance or organizational needs but was instead a calculated move to clear the decks for the new leadership. This view is bolstered by the nature of the re-organization, which has been described as “sweeping” and “indiscriminate.”

In addition to seeking financial compensation, the lawsuits also demand that the CBN cover the cost of litigation, with a 21 percent post-judgment interest on all sums awarded. The claimants argue that the court should recognize the significant harm done to them, both financially and reputationally, by their sudden and unjust dismissal.

However, financial analysts have noted that the ongoing legal battle could have far-reaching implications for the central bank. They explain that among other things, if the court rules in favor of the claimants, it could lead to a significant financial burden for the bank, as well as potential reputational damage.

The dismissed employees are hoping that the lawsuits, which represent a fight not just for financial compensation, but also for professional vindication, will assuage the pain they have suffered.

Good People, join me to welcome Scholars from Nekon Education Foundation to Tekedia Mini-MBA. These young people will be co-learning with us, from Sept 9, as we begin the next edition of Tekedia Mini-MBA.

Nekon Education Foundation believes that education and skill acquisition are the critical keys to unlocking the potential of the Nigerian youth; it works to train and empower these future leaders of societies. Tekedia Institute is excited to be part of this mission.

In a world where the stock market is as unpredictable as a game of Monopoly, Fed Chair Jerome Powell seems to have rolled a double six, sending Wall Street into a veritable ‘Advance to Go’ scenario. On a sunny Friday that will be etched in the annals of financial folklore, Powell, akin to a financial wizard, waved his metaphorical wand and uttered the magic words: rate cuts are coming.

The markets, which had been as jittery as a cat in a room full of rocking chairs, reacted with the kind of enthusiasm usually reserved for a surprise Beyoncé album drop. Stocks soared, investors cheered, and somewhere, a Wall Street bull must have been doing a happy dance. It was a rally that would make even the most stoic of traders crack a smile.

In the grand scheme of things, rate cuts are a bit like a financial weather forecast – they can give us an idea of what’s to come, but there’s always a chance of an unexpected storm. So, grab your economic umbrella, and let’s weather this together. And remember, in the world of finance, it’s always wise to expect the unexpected.

Powell’s dovish stance, which is Wall Street speak for ‘let’s make borrowing cheaper,’ was the equivalent of announcing a flash sale at the interest rate boutique, and the markets were all too eager to shop till they dropped. The promise of slashed rates was like an early Christmas gift for sectors craving lower borrowing costs, and they rallied like kids around a piñata.

But let’s not forget the ETFs, those bundles of joy that investors cuddle for diversification. They rallied too, basking in the glow of Powell’s market-boosting incantations. Regional banks, solar, and home builders – all got a slice of the rate cut cake.

And as the sun set on this historic Friday, one could almost hear the distant sound of champagne corks popping in trading floors across the nation. It was a day when Powell, armed with just a speech and a policy, led a charge that would make even the most battle-hardened general proud.

For starters, your savings account might start to look a bit anemic. Lower interest rates often mean the returns on your hard-earned cash could dwindle down to a trickle, making the mattress-stashing granny seem like a financial guru. But it’s not all doom and gloom. If you’ve been eyeing that dream house with the white picket fence, rate cuts could be your fairy godmother. Cheaper borrowing costs can turn your mortgage payments from a nightmare into a sweet dream, leaving you with extra cash to splurge on, say, a lifetime supply of avocado toast.

Businesses, too, get in on the action. Lower rates can mean cheaper loans, which might lead to more investment, more jobs, and more of those ‘Employee of the Month’ mugs to go around. It’s like a corporate Christmas, but instead of Santa, you’ve got Jerome Powell sliding down the chimney with a bag full of low-interest loans.

And let’s not forget the stock market – that tempestuous sea where fortunes are made and lost in the blink of an eye. Rate cuts can be like a gust of wind in the sails of the stock market, sending prices soaring to the delight of investors. But beware, the winds can change, and what goes up must come down. So, hold onto your hats (and your stocks), because it could be a bumpy ride.

For more on the rollercoaster ride that is the stock market, and how one man’s words can be worth their weight in gold (or stocks, as the case may be), stay tuned. Because if there’s one thing we know about the markets, it’s that there’s never a dull moment. And if there’s one thing, we know about Fed Chairs, it’s that they have the power to turn the financial world on its head with a single speech.