CBN Splashes N306bn on Severance, Staff Costs

The Central Bank of Nigeria (CBN) has confirmed that it spent a staggering N306.63 billion on staff-related expenses in 2024, marking an unprecedented spike of over 700% from the N37.7 billion recorded in the previous year. This massive outlay was primarily driven by severance payments and staff benefits under its Early Exit Programme (EEP), as well as routine salary and pension contributions.

The disclosure was made in the apex bank’s newly released 2024 financial statement, analyzed by our correspondent on Tuesday. The document shows that N191.95 billion was disbursed for staff allowances, N55.62 billion went toward wages and salaries, while N36.5 billion covered defined benefit plan expenses—representing a significant increase across all personnel-related categories.

The EEP, introduced as part of a sweeping internal restructuring initiative led by CBN Governor Olayemi Cardoso, was aimed at encouraging voluntary retirement among mid- and senior-level staff. Over 1,000 employees reportedly opted to resign under the scheme, which promised generous financial incentives—up to five years’ gross annual emoluments—for eligible participants, from senior supervisors to deputy managers.

In addition to voluntary exits, the CBN had earlier sacked 317 staff members and reorganized approximately 1,500 positions, triggering one of the largest internal workforce shake-ups in the bank’s history.

Despite the steep rise in expenditure, the financial statement did not provide detailed breakdowns of individual severance packages or specify the total number of staff affected. It also did not indicate the current total strength of the CBN workforce. However, industry analysts believe the figures may reflect the bank’s strategic shift towards a leaner and more performance-driven organization.

The personnel costs alone accounted for over 50% of the CBN’s total operating expenses for the year and exceeded 2023 figures by N268.93 billion.

Beyond staff costs, the bank’s operational outlays also included:

N152.74 billion in administrative expenses

N50 billion allocated to the Banking Sector Resolution Sinking Fund

N8.67 billion for intervention activities

N53.95 billion as cost of sales

N21.53 billion for repairs and maintenance

N7.14 billion on professional fees

N2.23 billion for directors’ related expenses

N1.01 billion on audit fees

N12.69 billion as OTC FX futures transaction fees

N493 million recorded as loss on sale of assets


The bank also reported a marginal increase in pension contributions under the Defined Contribution Plan, from N17.3 billion in 2023 to N17.7 billion in 2024. Meanwhile, defined benefit plan expenses saw a 49% increase, underscoring the growing financial commitment to both active and retired staff.

While the CBN’s financial restructuring is aimed at boosting efficiency, experts have raised concerns over the sustainability of such high recurrent spending, especially in a climate of economic uncertainty, exchange rate volatility, and inflationary pressures.

“The severance figures reflect an intentional pivot towards operational streamlining,” a Lagos-based financial analyst told our correspondent. “But the challenge is ensuring that the bank’s core mandate isn’t compromised by a reduced workforce or stretched fiscal obligations.”

Governor Cardoso’s administration has come under both praise and scrutiny for its bold reforms at the apex bank, with proponents highlighting a much-needed culture shift, while critics warn of long-term costs.

As Nigeria’s central monetary authority navigates post-pandemic economic recovery, foreign exchange challenges, and inflation control, analysts and stakeholders will be closely monitoring the implications of these internal reforms on monetary policy execution and financial stability.