All executive director appointments at the Nigeria Incentive-Based Risk Sharing System for Agriculture Lending (NIRSAL) have been discontinued by the Central Bank of Nigeria (CBN).
The decision is the most recent in a string of layoffs at the top bank since CBN Governor Olayemi Cardoso took office last year. Cardoso authorised the decision on Friday.
The NIRSAL executive directors that were fired are Olatunde Akande, the executive director of technical affairs, Kennedy Nwaruh, the executive director of operations, and Abbas Umar Masanawa, the managing director and chief executive officer.
The remaining employees are awaiting clarification on the reasons underlying the executive directors’ termination, according to an NIRSAL official who verified the development.
The CBN stated in the termination letters that the dismissals were due to an ongoing substantial organisational and human capital restructuring exercise.
NIRSAL, a non-bank financial institution completely controlled by the CBN, was founded in 2013 to promote agricultural financing and investment.
It has played a critical role in derisking the agriculture value chain, facilitating approximately N219 billion in funding for the industry. The NIRSAL layoffs are part of a larger trend at the CBN, where over 700 employees have been let go in the last year. In May, seven directors and more than 90 top management employees were fired.
The string of terminations has prompted questions about the bank’s restructuring efforts and their influence on its operations and the entire financial system.
As the CBN continues to restructure, the ramifications for NIRSAL and the broader agriculture sector remain uncertain.
The departure of the executive directors raises concerns about the organisation’s future orientation and ability to effectively assist agricultural growth in Nigeria.
In Essence
The recent dismissal of NIRSAL executive directors by the Central Bank of Nigeria (CBN) reflects a significant organizational shake-up under the leadership of CBN Governor Olayemi Cardoso.
This decision is part of a broader restructuring effort at the CBN, which has seen over 700 employees laid off in the past year, including seven directors and more than 90 top management personnel.
NIRSAL’s role in promoting agricultural financing and investment in Nigeria is critical. Since its establishment in 2013, it has facilitated approximately N219 billion in funding for the agriculture sector.
The dismissal of key executives raises questions about the future direction and effectiveness of NIRSAL in fulfilling its mandate.
