The Central Bank of Nigeria (CBN) has announced a major restructuring of its operations, moving some of its key departments from its Abuja headquarters to Lagos, the country’s commercial hub.
The move, which was communicated in a circular dated January 12, 2023, is aimed at decongesting the head office, improving office space efficiency, and adhering to safety standards.
According to the circular, the decision was prompted by safety concerns, increased health and accident risks, and the need to comply with building regulations, following repeated warnings from the facility manager and recommendations from the committee on decongestion of the CBN head office building.
The departments that will be relocated to Lagos are:
- Banking Supervision: Responsible for overseeing the banking sector, ensuring compliance, and maintaining stability.
- Other Financial Institutions Supervision: Tasked with regulating non-banking financial institutions to safeguard the financial system.
- Consumer Protection Department: Dedicated to protecting the rights and interests of consumers in financial transactions.
- Payment System Management Department: Facilitating efficient and secure payment systems to support economic transactions.
- Financial Policy Regulations Department: Formulating and implementing policies to regulate financial activities and promote economic stability.
The circular also stated that the affected staff members will be given adequate time to relocate and settle in Lagos and that the CBN will provide necessary support and logistics to facilitate the process.
The CBN’s restructuring is seen as a bold move to enhance its performance and effectiveness, as well as to align with the changing dynamics of the Nigerian economy.
Lagos is the largest city and the economic powerhouse of Nigeria, accounting for over 30% of the country’s GDP and hosting the headquarters of most banks and financial institutions.
The CBN’s relocation to Lagos is expected to improve its coordination and collaboration with the key players in the financial sector, as well as to boost its visibility and accessibility to the public.
The CBN’s move is also in line with the global trend of decentralizing central bank functions and operations, as seen in countries like the United States, the United Kingdom, Canada, and Australia, where central banks have regional offices or branches in different cities or states.
The CBN’s restructuring comes at a critical time when the Nigerian economy is facing multiple challenges, such as inflation, exchange rate volatility, fiscal deficit, debt burden, and insecurity.
The CBN has been at the forefront of implementing various monetary and fiscal policies to stabilize the economy and support growth and development.
Some of these policies include the introduction of the Naira 4 Dollar scheme to boost remittance inflows, the establishment of the Infrastructure Corporation of Nigeria (InfraCorp) to finance infrastructure projects, the launch of the e-Naira digital currency to enhance financial inclusion and the continuation of the intervention funds to support various sectors affected by the COVID-19 pandemic.
The CBN’s relocation to Lagos is expected to enhance its capacity and responsiveness to address the economic challenges and opportunities in Nigeria, as well as to foster trust and confidence among the stakeholders and the general public.
The CBN has assured that the restructuring will not affect its core mandate of ensuring monetary and price stability and that it will continue to discharge its duties and responsibilities with utmost professionalism and integrity.
Source: BusinessDay
