The Central Bank of Nigeria (CBN) spent N306.63 billion on payment of severance to former employees it asked to take an early exit option from the bank in 2024.
The amount represents an increase of over 700 per cent from the N37.7 billion spent in 2023.
Details of the spending are contained in CBN’s recently released 2024 financial statement.
According to the document, under the personnel expenses subhead, a total of N191.95 billion was spent on staff allowances, while N55.62 billion was incurred as wages and salaries for its employees during the year.
In 2024, the CBN had opened a window under which it said over 1,000 employees voluntarily opted to resign from the bank under its bank’s “Early Exit Programme.”
This followed an earlier sack of 317 staff and an internal restructuring exercise which affected about 1,500 staff.
A severance package worth over N50 billion was said to have been allocated as the payoff for the exercise.
However, in its financial statement, the apex bank disclosed that it spent N306.63 billion on staff-related expenses, even though it didn’t provide a breakdown.
The CBN, however, noted that the figure includes payments made to employees who opted for the early exit scheme during the year.
The financial report also did not disclose the exact number of affected employees and payments made to earlier sacked staff as well as its staff strength.
The cost represents over 50 per cent of the bank’s operating expenses for the year and 106.1 per cent or N313.12 billion higher than N295.37 billion recorded as personnel cost in 2023.
A breakdown showed that staff allowances also rose to N191.9 billion from N168.6 billion, reflecting a sustained upward trend in recurrent spending.
Defined benefit plan expenses rose by 49 per cent to N36.5 billion, while wages and salaries rose to N55.6 billion from N47 billion.
Similarly, pension contributions under the Defined Contribution Plan saw a marginal rise, moving from N17.3 billion to N17.7 billion, underscoring the steady rise in the bank compensation burden.
Furthermore, the bank incurred N152.74 billion as administrative expenses, N50 billion for the banking sector resolution sinking funds, N8.67 billion as intervention activities expenses, N53.95 billion, and as cost of sales.
Other operating costs include N21.53 billion for repairs and maintenance, N1.75 billion as bank charges, N7.14 billion for professional fees, N2.23 billion for directors’ related expenses, N1.01 billion as Audit fees, N392 million as donations, and N12.69 billion for OTC FX futures transactions fee expenses.
The statement also showed that N70 million was spent on technical assistance expenses, and N493 million as loss on sale of property, plant, and equipment.
