Northern Elders Forum rejects ‘secret move’ to relocate key CBN Departments to Lagos

The Northern Elders Forum, NEF, has rejected the reported plans by the Central Bank of Nigeria, CBN, to relocate major departments from the Abuja headquarters to the former headquarters in Lagos.

The NEF, in a statement by its spokesperson, Abdul-Azeez Suleiman, recognized 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.

READ ALSO: JUST–IN: CBN Sacks MDs, Boards Of Titan Trust, Union Bank, Keystone Bank, Polaris

According to the statement, the affected departments are crucial to the functioning of the CBN.

“Therefore, relocating them entirely to Lagos will only serve to further strengthen the already dominant position of Lagos, while potentially weakening the significance and role of Abuja,” the statement added.

While acknowledging the CBN’s desire to improve efficiency and effectiveness, the NEF expressed worry over the potential negative impact of relocating these essential departments on both the institution itself and the nation as a whole.

“The movement 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.

“Here are 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.

“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.

“Relocating key departments away from the nation’s capital could send a negative signal to both local and international investors. It may raise concerns about political stability, policy consistency, and the government’s commitment to regional inclusiveness. This could lead to reduced investor confidence in the Nigerian economy, ultimately impacting foreign direct investment, capital inflows, and overall economic growth.

READ ALSO: JUST–IN: CBN Sacks MDs, Boards Of Titan Trust, Union Bank, Keystone Bank, Polaris

“Northern Nigeria already faces various economic challenges, such as poverty, unemployment, and insecurity. Moving key departments away from Abuja would exacerbate the imbalance in economic development between the northern and southern regions. It could hinder the flow of investments, infrastructure development, and job creation opportunities in the north, thereby stifling economic growth and exacerbating the existing socio-economic challenges.

“The NEF finds the broader negative implications of relocating these key departments ridiculous and unacceptable as moving economic decision-making power to Lagos could exacerbate regional disparities, fostering a sense of marginalization among other regions, particularly Northern Nigeria.

“Additionally, this move could hinder the northen governments’ efforts to promote economic diversification and reduce dependence on oil revenue.

“Unacceptably too,, the North, which is home to a significant portion of Nigeria’s population, would be disproportionately affected by the relocation with reduced access to economic opportunities and financial services further widening the economic gap between