The Central Bank of Nigeria (CBN) has redeployed eight directors to the Financial Sector Surveillance (FSS) Department in the Maitama office, a move that has caused a stir within the organization. There are concerns among some of the staff members that this could be the first of many redeployments, or even layoffs.
The FSS Department is generally considered to be a less desirable posting within the CBN, and the redeployment of eight directors there has been likened to a punishment.
Speculation has arisen that the CBN is under pressure to restructure its workforce, and more redeployments could be on the horizon.
A source who confirmed the redeployments to The Nation has said that the FSS Department is not a place where much happens, and that the directors have been “sent to Siberia” instead of being fired outright.
According to the source, other directors who were moved last week include Dr. Mahmoud Hassan, formerly of the Monetary Policy Department, who now heads the Trade and Exchange Department, and the former Director of Human Resources, who has been moved to Capacity.
The redeployment started over two weeks ago and has generated anxiety among other staff members of the bank.
It has been gathered that the “directors were redeployed as part of efforts by the new CBN Governor Yemi Cardoso and his team of Deputy Governors to restructure the apex bank.”
One of the affected directors is Mr. Philip Yusuf Yila, who was previously the Director of Development Finance of the CBN.
Under Yila’s leadership, the Development Finance Department (DFD) played a crucial role in supporting businesses through increased access to finance for priority sectors under various programmes such as the Anchor Borrowers’ Programme (ABP), the Agri-Business/Small and Medium Enterprises Investment Scheme (AGSMEIS), and the Micro, Small and Medium Enterprises Development Fund (MSMEDF), as well as disbursing funds to households and small businesses during the COVID-19 pandemic to cushion the impact of the lockdown.
The DFD also reduced the cost of finance for priority sectors through initiatives such as the Interest Rate Reduction Scheme (IRS) and the Refinancing and Rediscounting Scheme (RRF).
The new CBN Governor, Yemi Cardoso, has criticized these quasi-fiscal policies of his predecessor, Godwin Emefiele, saying that they resulted in N10 trillion being pumped into the economy through intervention programmes.
Cardoso has pledged to address these issues and restore corporate governance at the CBN.
The redeployment of eight directors to FSS has further fueled speculation that the CBN is considering more drastic measures directed at the workforce.
