CBN reportedly redeploys 8 top directors, others in 'housecleaning' move

The Central Bank of Nigeria (CBN) may have discreetly redeployed top officials in the apex bank as part of moves to reinvigorate the institution.

Some of the affected staff confirmed the development to The Guardian.

This is as Olayemi Cardoso, the CBN Governor, commenced housecleaning to audit staff and fish out personnel not considered suitable for their role in line with the bank's new direction.

Some directors were moved recently

In a recent posting, the eight directors from the CBN office were moved to the Financial Sector Surveillance (FSS) Department in the Maitama office.

Philip Yusuf Yila, the Director of the Development Finance Department (DFD) under the previous administration, was among those sent to the office.

Under several programmes, including the Micro, Small and Medium Enterprises Development Fund (MSMEDF), the Agri-Business/Small and Medium Enterprises Investment Scheme (AGSMEIS), and the Anchor Borrowers' Programme (ABP), Yila oversaw the DFD, which was instrumental in assisting businesses by enhancing their access to financing.

Earlier, the CBN disclosed its intent to stop its involvement in development financing. This was to concentrate on advising responsibilities on economic growth, particularly under the new governor.

The apex bank took a stern stance against potential conflicts of interest within the banking sector. It reportedly introduced stringent sanctions targeting directors of financial institutions who secure loans from the banks they are affiliated with.

Legit.ng observed that the Director of Corporate Communications, Dr Isa Abdulmumin, has also been redeployed while Sidi Ali Hakama takes over in an acting capacity. This was seen in a recent bank directive on the old and redesigned naira notes.

Some bank staff fear that more people could be affected by the redeployment as it is unclear why it was initiated.

There are also indications that the CBN may have been pushing for the review of the CBN Act and Banks and Other Financial Institutions Act (BOFIA) to strip it of prudential regulations.

The Punch earlier reported that a bill to amend the Central Bank of Nigeria Act scaled Second Reading at the House of Representatives on Thursday, November 9, 2023.