Finance and economic analysts have exchanged views on the relocation of some units and departments of the Central Bank of Nigeria to Lagos.
Stakeholders spoke to PUNCH Online on Wednesday following the apex bank’s recent announcement directing the movement of some of its units and departments to Lagos to enhance operational efficiency.
CBN’s decision to move certain departments from its headquarters in Abuja to Lagos has sparked intense debates and controversies in recent weeks.
While some view it as a wise choice given Lagos’ superior infrastructural capacity, others, primarily from the northern political class, have expressed concerns about potential disparities between north and south.
In an interview with our correspondent, Managing Director of APT Securities and Funds Limited, Garba Korfi, described the apex bank’s decision as best for the development of the national economy and blessing of Lagos given the existing but deteriorating infrastructure of the CBN in the city.
Korfe, the economics and investment expert, stressed the potential positive impact if the Central Bank of Nigeria operates efficiently, saying: “If the Central Bank of Nigeria operates efficiently, it is better for the economy because it is the monetary policy of the economy. Whatever they think will be better for their system and their economy, ultimately, They should be encouraged to do so.
He noted that Lagos State would benefit from increased tax revenues due to the relocation of CBN units and departments, as more people would receive salaries within the state.
Regarding concerns over the Central Bank of Nigeria’s decision to move units from Abuja to Lagos, Korfi highlighted the overall benefits, saying: “Since the overall benefits outweigh the costs, so be it. It is not the direct cost you are looking at, but the overall benefits.
He justified the move, citing the Central Bank of Nigeria’s need for more operational space and the concentration of the banks’ head offices in Lagos.
Regarding the legal aspects of CBN actions, Korvi emphasized the employer’s right to deploy employees to increase productivity.
He suggested that if the employee does not agree with such decisions, resignation would be an option, stressing the availability of job opportunities for others.
In the same vein, Senior Partner at Intel Solicitors, Ademola Salami, said: “The Central Bank of Nigeria effectively functions as a bank for bankers and has the flexibility to operate optimally from any region of the country. The deployment of CBN staff to different parts of Nigeria is aligned with operational needs and is conducted Without external interference.
“While the administrative headquarters of major commercial banks are located in Lagos, it prompts consideration of whether it makes administrative sense for the Central Bank of Nigeria to execute transactions or perform functions from its head office in Abuja, rather than utilizing existing structures in Lagos.”
Salami added: “The recent agitation from some quarters against the actions of the Central Bank of Nigeria appears unwarranted, lacking in support, and lacking in legal merit, especially considering that no staff has been laid off over the decision. It is imperative that we recognize that the CBN and its workforce Work as a cohesive unit.
Ultimately, unity must prevail, emphasizing that we are one indivisible and united Nigeria.
Waliu Abimbola, a lecturer in the Department of Foreign Languages at Olabisi Onabanjo University in Ago-Ewoye Ogun State, noted that the economic implications of such a strategic move do not require a degree in economics to be certain that some departments and units of the Central Bank of Nigeria should not be. To be located in Abuja.
He therefore explained that this step comes at the right time and is important for strategic purposes.
He said: “Besides Lagos being a hub of commerce and industry, this relocation will enable the Central Bank of Nigeria to effectively monitor the activities of banks, many of which are located in Lagos. One cannot easily supervise the actions of banks and exchange houses in Abuja.
“Although I am not a lawyer, it is worth noting that laws are made by the government. If there are obstacles to such movements, the presidency has the knowledge and the ability to remove them.
Lawyer Bembe Adelo said there may be additional reasons why the Central Bank of Nigeria moved some of its units and departments to Lagos such as effective monitoring and supervision of commercial banks under its control.
“We should not be ashamed of the fact that Lagos has most of the bank headquarters and it is enough for us to agree that the presence of a regulator like CBN is very important in Lagos for adequate monitoring, cost effectiveness and alleviation of many burdens on the CBN headquarters,” he said.
Speaking on the workings, functions and power of the Central Bank of Nigeria to establish any units under its jurisdiction, Adelofu added: “The Bank is charged with the responsibility of administering the Banks and Other Financial Institutions Act (BOFIA) 2020, with the sole authority intended to ensure high standards of banking practice and financial stability from During its supervisory activities, as well as promoting an effective payment system.
“In addition to its core functions, the CBN has over the years undertaken some key developmental functions, focusing on all the major sectors of the Nigerian economy (financial, agricultural and industrial sectors). Generally, these functions are carried out by the bank through its various departments.
Through these and other mandates, the CBN constitutionally has the power to determine its operations and where and how it will perform a particular function.