The Nigerian Exchange Group (NGX) has relieved some staff members of their jobs days after its annual general meeting (AGM) which was held in Lagos.

Multiple sources told Nairametrics that over 40 staff members of NGX Group were affected, with top shots in the organization asked to go.

The affected staff members, according to sources, include regulatory officers, compliance managers, audit managers, the investment team, the chief finance officer, and the general counsel of NGX, among others.

The overhaul was led by PricewaterhouseCoopers (PwC), a multinational professional services firm, Nairametrics understands.

The PwC carried out a staff audit and made recommendations to Group Managing Director/Chief Executive Officer of Nigerian Exchange Group, Mr Temi Popoola, who implemented the downsizing, a source said.

• “Mr Popoola knew that he was in a position to be the next Group CEO when Oscar Onyema (former NGX Group CEO) left. So, as soon as he assumed office, he contracted PwC to overhaul NGX Group,” an affected senior staff member told Nairametrics.
• “However, several times, PwC asked about job responsibilities from the Human Resources (HR) Department. In preparation for the AGM, as Holdco managers, we were in charge of organizing the AGM and we did a lot of leg work to ensure that we got enough proxy shareholders so as to secure enough percentage required to rectify Popoola as GMD.”

The ex-staffer said after the AGM, same day around 5 pm, a virtual meeting was held with all staff members of the group, where the Group Managing Director said that he had got feedback from PwC and that he was going to scrap offices and allow staff members that were no longer relevant to the organization to go.

Mr Popoola noted that he was going to send termination letters to affected staff the same day and have their emails blocked for access, the ex-staff member said.

• “He didn’t give the affected people the opportunity to ask questions. He said consultants did a transparent job but he did not show the results of the review to anybody,” another affected ex-staff member said.
• “We didn’t know the criteria that were used to come to the conclusion of the sacks. That aside, we have a high staff attrition rate, not to forget that the payout to the board level is extremely high.”

Another affected staff member said the decision of the NGX to downsize was greeted with pessimism, noting that there were no clear criteria for the dismissal.

Currently, the affected staff members are demanding reinstatement, emphasizing their contributions and lack of justification for their terminations.

Some are seeking financial compensation, while others are advocating for reinstatement.

The NGX Group did not comment on the downsizing.

More Insights

• The NGX will not be the first Federal Government-led institution to downsize.

On April 8, the Central Bank of Nigeria (CBN) sacked five to eight directors. Those affected were in Trade and Exchange Department, Securities Department, Development Finance Department, as well as Purchasing and Support Services Department, including the Public Affairs Department, Nairametrics earlier reported.  The regulator equally retrenched 32 staff members the same day, striking fear in the staff.

• So far, the apex bank has sacked 117 staff members across its 27 departments, multiple sources said.
• There are fears that more members of staff will lose their jobs at the CBN, as Governor Yemi Cardoso plans to consolidate his position as a radical central banker.

No big deal

Downsizing not new as it is common in several organizations. Recruitment experts say downsizing is sometimes necessitated by economic downturns, lack of productivity, and redundancies, among others.

• “Downsizing is not always a big deal,” said a recruitment expert, Dan Agim.
• “It is forced upon organizations when there is low productivity or over-recruitment. Sometimes, it is caused by economic downturns, but that is mainly for corporates.
• “At times, it is driven by disloyalty for a new sheriff in town or when a new CEO feels that those around are loyal to the previous CEO. It may also be caused by the perception of imbalance, such as when it is perceived that the majority of people in the organization are from one religious, ethnic, or religious group,” he said.

This is a developing story, more details later…

[Nairametrics]