The Northern Elders Forum (NEF) has raised serious concerns regarding the purported plans of the Central Bank of Nigeria (CBN) to transfer key departments from its headquarters in Abuja to the former headquarters in Lagos.
The forum strongly opposes this move, asserting that it could exacerbate economic inequalities between Northern and Southern Nigeria.
In a statement released by Abdul-Azeez Suleiman, the director of publicity and advocacy for NEF, the organization acknowledges the significance of vital departments such as Banking Supervision (DBS), Other Financial Institutions Supervision (OFISD), Consumer Protection Department (CPD), Payment System Management Department (PSMD), and Financial Policy Regulations Department (FPRD) within the CBN.
Suleiman highlights that, according to the Banking and Other Financial Institutions Act (BOFIA), these departments play a crucial role in the CBN’s operations.
NEF contends that relocating these departments to Lagos, as proposed by the CBN, would strengthen Lagos’s already dominant position at the expense of Abuja, potentially diminishing the latter’s significance and role.
While recognizing the CBN’s goal of enhancing efficiency and effectiveness, NEF expresses apprehension about the potential adverse effects of the relocation on both the institution and the nation.
Suleiman outlines the anticipated drawbacks of the move, including increased costs, talent loss, operational disruptions, diminished coordination, regional economic disparities, hindered economic development in Northern Nigeria, and reduced investor confidence in the nation’s economy.
The NEF urges a reconsideration of the relocation plan to mitigate these concerns and ensure the overall well-being of the CBN and the country.
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He listed some of the potential consequences: “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.”
It further stated that 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,” it contended.
Moreover, he emphasized that relocating crucial departments to Lagos, situated in the southwestern region of Nigeria, could worsen economic disparities among regions.
He contended that centralizing significant positions and offices in one area might reinforce the perception of Lagos as the primary economic hub, potentially marginalizing other regions, particularly northern Nigeria.
This, he argued, could fuel heightened sentiments of neglect and economic imbalance, thereby generating social and political tensions.