Northern Elders Forum faults relocation of key CBN departments to Lagos

The Northern Elders Forum (NEF), has faulted the alleged plan to relocate major departments in the Central Bank of Nigeria (CBN), from Abuja to the former headquarters in Lagos.

The NEF recognizes the importance of the departments in question, including Banking Supervision, DBS; Other Financial Institutions Supervision, OFISD; Consumer Protection Department, CPD; Payment System Management Department, PSMD; and Financial Policy Regulations Department, FPRD, as vital components of the CBN.

NEF, in a statement by its spokesperson, Abdul-Azeez Suleiman, said that the forum is worried about the potential negative impact of relocating these essential departments on both the institution itself and the nation as a whole.

He noted that the movement of some departments would involve increased costs, loss of talent, disruption in operations, reduced coordination, regional economic disparities, impaired economic development in northern Nigeria, and decreased investor confidence in the nation’s economy.

Suleiman said: “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. This would strain the CBN’s budget and divert resources away from other essential functions and initiatives.

“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.

“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.

“Moving key departments to a different geographical location would hinder effective coordination and communication with other government agencies in Abuja. 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.

“Shifting key departments to Lagos, which is located in the southwestern part of Nigeria, would exacerbate regional economic disparities. The concentration of such important positions and offices in one region may perpetuate the perception of Lagos as the economic center, potentially marginalizing other regions, especially Northern Nigeria. This could lead to increased feelings of neglect or economic imbalance, creating social and political tensions.”

The NEF urges the CBN and relevant authorities to prioritize the nation’s overall progress and the well-being of its citizens, and recommend a holistic approach that considers not only the efficiency and effectiveness of departmental operations but also the livelihoods and future development of all regions of Nigeria.

The Forum urged the government to evaluate the potential drawbacks of such a move thoroughly. It is important to consider the impact on Abuja’s role as the capital city, the potential repercussions on regional development and economic balance, and the overall effectiveness and efficiency of the relocated departments in serving their intended purpose.

NEF calls upon the CBN and relevant authorities to thoroughly review the consequences of this relocation and explore alternative arrangements that do not compromise the career growth and work-life balance of its valuable employees. It is essential to ensure that the burden of relocation is not unfairly placed on the shoulders of these individuals and their families.