Regarding the alleged plans of the Central Bank of Nigeria (CBN) to move important divisions from its current headquarters in Abuja to the former headquarters in Lagos, the Northern Elders Forum (NEF) has expressed grave concerns.
The forum is adamantly against this action, claiming that it would make the economic divide between Northern and Southern Nigeria worse.
The NEF has acknowledged the importance of key departments within the CBN, including Banking Supervision (DBS), Other Financial Institutions Supervision (OFISD), Consumer Protection Department (CPD), Payment System Management Department (PSMD), and Financial Policy Regulations Department (FPRD), according to a statement issued by Abdul-Azeez Suleiman, director of publicity and advocacy for the organisation.
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Suleiman emphasises that these departments are essential to the CBN’s functions as per the Banking and Other Financial Institutions Act (BOFIA).
According to NEF, moving these ministries to Lagos—as the CBN has suggested—would bolster Lagos’s already-dominant position at the expense of Abuja, hence lessening the latter’s importance and influence.
Although NEF acknowledges the CBN’s objective of improving efficacy and efficiency, it expresses concerns regarding the possible negative impact of the move on the organisation and the country.
Suleiman lists the expected negative effects of the change, such as higher expenses, a loss of talent, operational disruptions, a lack of coordination, regional economic disparities, a hindrance to Northern Nigeria’s economic progress, and a decline in investor confidence in the country’s economy.
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To allay these worries and guarantee the general welfare of the CBN and the nation, the NEF strongly recommends reevaluating the relocation strategy.
“It would require significant financial investment as the CBN would need to allocate funds for setting up new offices, purchasing or leasing properties, relocating employees, and other infrastructural requirements,” he said, enumerating some possible outcomes.
The CBN’s budget would be put under pressure, and funds would be taken away from other crucial projects and activities.
“The CBN has a well-established workforce in Abuja, including professionals with significant knowledge and experience. Moving key departments to Lagos may lead to a loss of skilled employees who are unable or unwilling to relocate. This brain drain could negatively impact the CBN’s performance and efficiency.
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“Relocation would lead to a temporary disruption in the CBN’s operations. Employees would need time to adjust to their new surroundings, potentially causing delays in decision-making and implementation. The transition period could result in reduced productivity, inefficient processes, and decreased service levels, further impacting the CBN’s effectiveness.”
It went on to say that relocating important departments will make it more difficult to coordinate and communicate with other Abuja-based government organisations.
“The CBN, as the nation’s monetary authority, relies on close cooperation with other bodies, such as the Ministry of Finance and relevant regulatory authorities. Physical separation may lead to increased bureaucracy and slower response times, negatively affecting policy formulation and execution,” it contended.
Additionally, he stressed that moving important departments to Lagos, which is located in southwest Nigeria, would make regional economic imbalances worse.
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He said that by consolidating important jobs and offices in one location, Lagos may continue to be seen as the main economic centre, marginalising other areas, especially northern Nigeria.
He contended that this could intensify feelings of abandonment and economic disparity, leading to social unrest and political unrest.
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