Business
CBN Spends N306bn on Staff Severance, Compensation in 2024
The Central Bank of Nigeria (CBN) has disclosed that it spent N306.63 billion on staff-related expenses in 2024, including severance packages for employees who exited the bank under its Early Exit Programme (EEP).
This figure represents a staggering 713% increase from the N37.7 billion spent in 2023, according to the apex bank’s newly released 2024 financial statement.
Of the total personnel costs, N191.95 billion was allocated to staff allowances, while N55.62 billion was spent on salaries. An additional N36.5 billion was recorded under defined benefit plans, marking a 49% rise compared to the previous year. Pension contributions under the Defined Contribution Plan also saw a slight increase, rising from N17.3 billion in 2023 to N17.7 billion in 2024.
The Early Exit Programme, introduced amid sweeping internal reforms under CBN Governor Olayemi Cardoso, allowed eligible employees to voluntarily resign in exchange for financial incentives. The programme targeted staff from senior supervisors to deputy managers, offering payouts equivalent to up to five years (60 months) of their current gross annual earnings.
While the CBN did not disclose the specific number of staff who exited under the programme, it earlier confirmed that over 1,000 employees took advantage of the EEP in 2024. This followed a broader restructuring initiative that affected approximately 1,500 staff and saw 317 layoffs.
The total personnel cost for the year accounted for more than half of the CBN’s total operating expenses and was N313.12 billion higher than the N295.37 billion recorded in 2023.
In addition to staff-related costs, the financial statement showed that the CBN spent N152.74 billion on administrative expenses and contributed N50 billion to the Banking Sector Resolution Sinking Fund. It also incurred N53.95 billion in cost of sales, N8.67 billion on intervention activities, and N21.53 billion on repairs and maintenance.
Other operational expenditures included N7.14 billion for professional fees, N2.23 billion for directors’ expenses, N1.75 billion in bank charges, N1.01 billion for audit fees, and N392 million in donations. The bank also recorded N12.69 billion in fees for Over-the-Counter (OTC) foreign exchange futures transactions, N70 million in technical assistance expenses, and a loss of N493 million on the sale of property, plant, and equipment.
Despite the hefty spending, the CBN did not provide a breakdown of severance payments or the total number of staff still in its employ.
