The recent relocation of some operational departments of the Central Bank of Nigeria (CBN) from its Abuja head office to Lagos State has got many economists, pundits and political observers talking; especially as it coincides with the relocation of the head office of the Federal Airport Authority of Nigeria (FAAN).
When all processes are followed for the planned relocation, some key line departments such as Banking and Supervision, Other Financial Institutions Supervision, Consumer Protection, Payment System Management and Financial Policy Regulations departments of the apex bank would be taken to Lagos. Expectedly, the move has generated mixed reactions with some even calling on the authorities to immediately halt the process, no matter the advantages it holds.
Expectedly, the planned relocation has caused disquiet within and outside the CBN. Those who oppose the decision say it is a deliberate attempt to witch-hunt some people from a certain part of the country. Their allegation is based on the fact that most of the departments mentioned in the Banking and Other Financial Institutions (BOFIA Act, an allegation that makes sense especially when they claim that the Olayemi Cardoso-led CBN is trying to further strengthen Lagos and weaken Abuja.
“When you move all these departments to Lagos, then what is left of the headquarters? It will become almost useless,” a source in the bank stated. There is also the issue of the sentiment expressed by some female folks from Northern extraction in the affected department who claim that as married women, the decision would have adverse effects on them.
With this plan, 1,533 staff will be moved to other CBN facilities within Abuja, Lagos and understaffed branches. Those who argue against the relocation plan do agree with the management’s claims that the action plan is focused on optimising the utilisation of other bank’s premises.
But why is it necessary to relocate those departments to Lagos? Or why is relocating those departments a big deal?
Economic experts believe the move is simply a matter of strategically locating the affected departments to the right place – Lagos which is the hub of banking sector operations in Nigeria – for proximity and easy access to the regulated financial institutions. Those who belong to that school of thought say it would have significant improvement on regulatory operations of the central bank more than the previous arrangement where the directors and other senior staff of the affected departments had to constantly be on the Lagos-Abuja road for supervisory duties.
“Locating the operational departments of a central bank in a commercial city offers advantages related to proximity to financial institutions, access to real-time information, a rich talent pool, and superior infrastructure and connectivity,” an economist, Saheed Abikpi said in a comment on the issue, adding that the these factors collectively contribute to the central bank’s ability to fulfill its mandate effectively and navigate the complexities of the modern financial landscape.
As the controversy unfolds, the bank’s management seems to have strong reasons for decongesting the head office. For instance, the head office currently has an occupancy level of 4,233 which significantly exceeds the optimal capacity of 2,700 designed for the head office building. “This overcrowding poses several critical challenges,” says the director in charge of the human resource department at the CBN.
Apart from that, there are also safety concerns. Because the building’s infrastructure was designed for a specific number of occupants, “exceeding this capacity has raised safety concerns, increased health and accident risks — and hinders efficient emergency evacuation,” said a safety and maintenance officer at the bank who simply identified himself as Ali.
Reduced efficiency’ crowded workspaces are negatively impacting productivity and collaboration. “Additionally, overstretched facilities have led to increased maintenance costs,” he said without disclosing how much has been spent on that item in the last five years. Ali also said that the building’s integrity can be compromised by exceeding its designed capacity.
According to the human resource department of the CBN, the decongestion of the headquarters is aimed at ensuring compliance with building safety standards and enhancing the efficient utilisation of our office space. That is not all. In a circular to announce the relocation of the departments, the department said “This action is necessitated by several factors, including the need to align the Bank’s structure with its functions and objectives, redistribute skills to ensure a more even geographical spread of talent and comply with building regulations, as indicated by repeated warnings from the Facility Manager, and the findings and recommendations of the Committee on Decongestion of the CBN Head Office Building.”
An economic analyst, Mr Stephen Kanabe believes that placing the operational departments of a central bank in a commercial city allows for close proximity to various financial institutions, including commercial banks, investment banks, and other financial service providers. This proximity, he said, fosters effective communication and collaboration between the central bank and these institutions. “It can facilitate the timely exchange of information, enhance the monitoring of financial activities, and enable quicker responses to emerging economic trends or challenges.”
If you ask Muhamma Abba who is in charge of the human resource department, he would justify the decision by simply saying that the decongestion will also improve our operational and workflow efficiency in many ways.
For a start, Mr Abba says the decision to redistribute departments and staff is rooted in a strategic approach to align the structure of the bank with its functions and objectives. He believes that certain departments may be better suited to operate in proximity to financial institutions’ head offices, which are predominantly located in Lagos.
“This strategic alignment ensures optimal collaboration and efficiency,” he said, adding that “the concentration of technical skills in the Abuja Head Office has led to a shortage at the branch level. Recognizing the importance of diverse and specialized talents across all branches, the reorganization seeks to redistribute technical skills to ensure that each branch has the necessary expertise for its specific operational needs.”
The explanation is also that the ongoing reorganization is not a random shuffle but a targeted effort towards process optimization. The director of human resources now tells all staff of the central that by collaborating with branch controllers, the management aims to tailor the placement of departments to the unique strengths and needs of each branch, thereby enhancing overall operational effectiveness.
As far as Arewa Consultative Forum (ACF) and Northern Senators in the current dispensation are concerned, that explanation by the monetary authorities can only be taken with a pinch of salt. ACF describes the relocation of the departments from Abuja to Lagos as a disturbing pattern of antagonistic actions often taken by certain federal administrations against the interests of the North and other parts of Nigeria.
“It is easy to ignore such planned actions by the CBN and FAAN (and AVSATEL), but it is impossible to fail to see in them a clear pattern of thinly disguised marginalisation of the North, nor is the grand strategy entirely new,” ACF’s national publicity secretary, Prof. T. A. Muhammad-Bab said in reaction to the development.
In that light, the Northern Senators Forum has asked the authorities to consider reversal of the relocated departments or get ready to face legal actions.
It is left to be seen how the issue pans out in the coming days.
