Finance
CBN staff at war with management
By Omoh, Gabriel, Business Editor
The reform being carried out in the Central Bank of Nigeria has pitched the management against the workers. Many of the workers are poise for a show down with the apex bank. Most of the workers are incensed by the frequent changes in the banks policy toward the welfare of the workers.
The most recent is the unilateral closure of the CBN primary school which both the Parent Teachers Association and the CBN staffers say is uncalled for. Some of the top management staff are grieved that the CBN governor while addressing the workers ask them to take a nap as they may not understand what he is saying. They say that the bank top management came up with a policy of early and voluntary retirement which many had applied to take advantage of but that of the non target group was withdrawn when the management was overwhelmed by the over 4,000 employee of the bank that put in their letter for early retirement.
The CBN Governor Professor Charles Soludo on assumption of office as governor introduced reforms in which he said the CBN will devote its resources to its core functions. Other non core area he said are to be scrapped or out sourced.
Following this development the CBN on November 1, 2004 wrote to the staffers of the bank through the Director Human Resources stating
“It would be recalled that an Early and Voluntary Retirement Scheme was implemented in the Bank for the first time in 2002. The Scheme was designed and implemented in response to its demand by the staff side of the Joint Consultative Council (JCC) as an acceptable way to address the pervasive frustration arising from unfulfilled promotion expectations.
Vacancy had become a serious limiting factor to generous promotions in an ageing Bank and even today the situation has not changed.
“Against the backdrop of an imminent contracted structure of the Bank with redesigned work processes that would be highly automated under the current change programme, another early retirement exercise has become inevitable. Besides, the Bank̓s current staff strength of 6,144 is considered bloated and top heavy. This exercise is intended for targeted groups of staff in the Bank. However, other staff who do not fall within the targeted groups could also opt to take advantage of the scheme subject to the Management̓s discretion.
“The Management fully considered both the interest of the Bank and that of its very loyal and dedicated employees in deciding on workforce reduction through an early retirement incentive package.
“Details of the scheme are as stated below: The targeted group;
*Senior staff who do not possess the minimum qualification of first university degree or its equivalent such as HND or other professional qualifications as stated in the CBN Staff Manual (mandatory). However, those who enrolled in higher institutions and have notified the Bank prior to the commencement of this scheme, and are still within the approved period as shown in their admission letters are allowed to continue if they are showing good progress provided they enrolled not later than 31st December, 2003;
*those whose duties/services are no longer required consequent upon the restructuring, the monetization policy and those whose duties would be outsourced (mandatory);
*all those who had been warned after disciplinary process since 1996 as approved by Management are given the option to voluntarily retire;
*those who have stagnated on their grades for at least eight (8) years are allowed to voluntarily retire under the scheme if they so wish;
*those who have one year or less to retire may voluntarily exit; and
*those who fall outside the targeted groups may be allowed to voluntarily take advantage of the scheme but subject to the Management̓s approval so as not to disrupt the Bank̓s operations unduly”.
According to the CBN memo
*The scheme shall last for one month, from 1st to 30th November, 2004. All exiting staff including those who fall into the mandatory groups are required to give one month notice
“*applications submitted within the period shall be treated as having given the required three (3) months̓ notice for disengagement as provided for in the Bank̓s contract of employment;
*staff on application shall continue to work until acceptance is communicated to them in writing;
*pre-retirement workshops would be organized for those who may opt to take advantage of the scheme.
*all applications for exit should be addressed to the Director of Human Resources through the respective departmental Directors.
“The members of staff are advised to note that at the lapse of the offer, the Management will reserve the right to retire any member of staff who falls within the targeted groups but failed to put in his/her letter of resignation without extending the benefits of the incentive package to such staff.
The bank had said that all categories of staff exiting under the scheme will first of all be entitled to their normal retirement benefits of gratuity, end of service entitlement and productivity bonus irrespective of the month of exit.
In addition to the above the CBN offered the Staff “whose duties/services either no longer exist or would be outsourced will be paid two years salary and one year allowances up front; those without minimum qualification will be paid one year salary up front; those with one year or less to retire will be paid the balance of their salary and allowances; those who have stagnated on their grades for at least 8 years, those who have been warned since 1996, the medically unfit and other volunteers will be paid two years salary and one year allowances up front; 30 per cent of loan balances are to be deducted up front from entitlements and the balance of 70 per cent to be recovered at 2 per cent interest by equal monthly installments, within the five-year guaranteed pension period; eligible staff shall qualify for pension irrespective of the fact that they may not have attained 45 years of age; since pension is guaranteed for five (5) years, staff who desire would be paid two years pension up front to enable them have enough capital for immediate investment. After this period, they shall resort to monthly pension; retirees and their spouses would enjoy the present medical facilities for three months and thereafter, start receiving the existing monetized medical allowances appropriate to their grades; and all staff affected who had been allocated lap-tops would be allowed to purchase them at 25 per cent of the book value.
‚ÄúFinally, in approving this package, the Board of Directors was very mindful of the cost of the whole exercise in view of the declining revenue profile of the Bank. The implementation of the scheme will be with effect from 30th November, 2004″.
As result of these provision it was gathered that over 4,000 of the bank employee applied to leave which would have led to the collapse of the apex bank. The CBN it was learnt quickly in another memo reversed the earlier one removing “those who fall outside the targeted group that may be allowed to voluntarily take advantage of the scheme. The CBN it was learnt has cut down on the number of months allowance from seven months to three stating that the bank is broke as it no longer collect interest on ways and means granted to government which the bank claim had be its main source of revenue.
CBN staffer also cite the case of the primary school which they said earlier Governors had stated explicitly that on the event of monetisation of allowances and incentives the school should be left to run. They said that CBN ought to have handed over the school to the teachers to run instead of out right closure and dismissal of all the teachers in the school.
CBN reforms
Finance
Afreximbank successfully closed its second Samurai Bond transactions, raising JPY 81.8bn or $527m
African Export-Import Bank said it has successfully closed its second Samurai bond transaction, securing a total of JPY 81.8 billion (approx. USD 527 million) through Regular and Retail Samurai Bonds offerings.
The execution surpasses the Bank’s 2024 debut issuance size, attracting orders from more than 100 institutional and retail investors, marking a renewed demonstration of strong Japanese investor confidence in the Bank’s credit and its growing presence in the yen capital markets.
On 18 November, Afreximbank priced a JPY 45.8 billion 3-year tranche in the Regular Samurai market following a comprehensive sequence of investor engagement activities leveraging Tokyo International Conference on African Development (TICAD9), including Non-Deal Roadshows (NDRs) in Tokyo, Kanazawa, Kyoto, Shiga and Osaka, a Global Investor Call, and a two-day soft-sounding process which tested investor appetite across 2.5-, 3-, 5-, 7-, and 10-year maturities.
With market expectations of a Bank of Japan interest rate increase, investor demand concentrated in shorter tenors, resulting in a focused 3-year tranche during official marketing.
The tranche attracted strong participation from asset managers (22.3%), life insurers (15.3%), regional corporates, and high-net-worth investors (39.7%).
Concurrently, Afreximbank priced its second Retail Samurai bond on 18 November, a JPY 36.0 billion 3-year tranche, more than double the inaugural JPY 14.1 billion Retail Samurai issuance completed in November 2024.
The 2025 Retail Samurai bond also marks the first Retail Samurai bond issued in Japan in 2025.
Following the amendment to Afreximbank’s shelf registration on 7 November 2025, SMBC Nikko conducted an extensive seven-business-day demand survey through its nationwide branch network, followed by a six-business-day bond offering period.
The offering benefited from strong visibility supported by Afreximbank’s investor engagement across the country, including the Bank’s participation at TICAD9, where Afreximbank hosted the Africa Finance Seminar to introduce Multinational Development Bank’s mandate in Africa and its credit profile to key Japanese institutional investors.
MBC Nikko Securities Inc. acted as Sole Lead Manager and Bookrunner for both the Regular and Retail Samurai transactions. Chandi Mwenebungu, Afreximbank’s Managing Director, Treasury & Markets and Group Treasurer, commented:
“We are pleased with the successful completion of our second Samurai bond transactions, which marked a significant increase from our inaugural Retail Samurai bond in 2024, and which reflect the growing depth of our relationship with Japanese investors.
The strong demand, both in the Regular and Retail offerings, demonstrates sustained confidence in Afreximbank’s credit and mandate.
We remain committed to deepening our engagement in the Samurai market through regular investor activities and continued collaboration with our Japanese partners.”
Ecobank Nigeria, a member of Africa’s leading pan-African banking group, has announced the launch of the Ecobank SME Bazaar—a two-weekend festive marketplace designed to celebrate local creativity, empower entrepreneurs, and give Lagos residents a premium shopping experience this Detty December. The Bazaar will hold on 29–30 November and 6–7 December at the Ecobank Pan African Centre (EPAC), Ozumba Mbadiwe Road, Victoria Island, Lagos. Speaking ahead of the event, Omoboye Odu, Head of SMEs, Ecobank Nigeria, reaffirmed the bank’s commitment to supporting small and medium-sized businesses, describing them as the heartbeat of Nigeria’s economy. She explained that the Ecobank SME Bazaar was created to enhance visibility for entrepreneurs, expand market access, and support sustainable business growth.
According to her, “This isn’t just a market—it’s a vibrant hub of culture, commerce, and connection. From fresh farm produce to trendy fashion, handcrafted pieces, lifestyle products, and delicious food and drinks, the Ecobank SME Bazaar promises an unforgettable experience for both shoppers and participating SMEs. Whether you’re shopping for festive gifts, hunting for unique finds, or soaking in the Detty December energy, this is the place to be.” Ms. Odu added that participating businesses will enjoy increased brand exposure, deeper customer engagement, and meaningful networking opportunities—making the Bazaar a strong platform for both festive-season sales and long-term business growth. The event is powered by Ecobank in partnership with TKD Farms, Eko Marche, Leyyow, and other SME-focused organisations committed to building sustainable enterprises.
The Central Bank of Nigeria (CBN) has said that16 banks have so far met the new capital requirements for their various licences, some four months before the March 31, 2026 deadline. The apex bank also indicated that 27 other banks have raised capital through various methods in one of the most extensive financial sector reforms since 2004. Addressing journalists at the end of the Monetary Policy Committee (MPC) meeting in Abuja, CBN Governor Mr Olayemi Cardoso said the banking recapitalisation was going on orderly, consistent with the regulator’s expectations. He said, “We are monitoring developments, and indications show the process is moving in the right direction.” Nigeria has 44 deposit-taking banks, including seven commercial banks with international authorisation, 15 with national authorisation, four with regional authorisation, four non-interest banks, six merchant banks, seven financial holding companies and one representative office.
Cardoso explained that eight commercial banks had met the N500 billion capital requirement as of July 22, 2024, rising to 14 by September of the same year. The number has now increased to 16 as the industry continues to race toward full compliance. He said that the reforms would reinforce the resilience of Nigerian banks both within the country and across the continent. “We are building a financial system that will be fit for purpose for the years ahead. Many Nigerian banks now operate across Africa and have been innovative across different markets. These new buffers will better equip them to manage risks in the multiple jurisdictions where they operate,” Cardoso said. According to him, the reforms would strengthen the financial sector’s capability to support households and businesses. He said, “Ultimately, this benefits Nigerians—our traders, our businesses and our citizens—who operate across those regions. “It should give everyone comfort to know that Nigerian banks with deep local understanding are present to support them. Commercial banks are also creating their own buffers through the ongoing recapitalisation.”
He added that the apex bank considered several factors in determining the new capital thresholds, including prevailing macroeconomic conditions, stress test results and the need for stronger risk buffers. He reassured on the regulator’s commitment to strict oversight as the consolidation progresses. “We will rigorously enforce our ‘fit and proper’ criteria for prospective new shareholders, senior management, and board members of banks, and proactively monitor the integrity of financial statements, adequacy of financial resources, and fair valuation of banks’ post-merger balance sheets,” Cardoso said. He said the CBN remained confident that the banking system would emerge stronger at the conclusion of the recapitalization exercise, with institutions better prepared to support Nigeria’s economic transformation Banks have up till March 31, 2026 to beef up their minimum capital base to the new standard set by the apex bank. Under the new minimum capital base, CBN uses a distinctive definition of the new minimum capital base for each category of banks as the addition of share capital and share premium, as against the previous use of shareholders’ funds.
While most banks have shareholders’ funds in excess of the new minimum capital base, their share premium and share capital significantly fall short of the new minimum definition. The CBN had in March 2024 released its circular on review of minimum capital requirement for commercial, merchant and non-interest banks. The apex bank increased the new minimum capital for commercial banks with international affiliations, otherwise known as mega banks, to N500 billion; commercial banks with national authorisation, N200 billion and commercial banks with regional license, N50 billion. Others included merchant banks, N50 billion; non-interest banks with national license, N20 billion and non-interest banks with regional license will now have N10 billion minimum capital. The 24-month timeline for compliance ends on March 31, 2026. Under the guidelines for the recapitalisation exercise, banks are expected to subject their new equity funds to capital verification before the clearance of the allotment proposal and release of the funds to the bank for onwards completion of the offer process and addition of the new capital to its capital base. The CBN is the final signatory in a tripartite capital verification committee that included the Securities and Exchange Commission (SEC) and the Nigeria Deposit Insurance Corporation (NDIC). The committee is saddled with scrutinising new funds being raised by banks under the ongoing banking sector recapitalisation exercise.
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