EXCLUSIVE: How Nigeria’s NIRSAL Bank Violates Federal Character, Appoints Only Northerners As Managing Director, Same With 80% Core Staff

SaharaReporters gathered that NIRSAL Bank has consistently appointed only Northerners as Managing Directors since its inception in 2015. 

The Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL) Bank, has been lopsided in its appointments since its establishment in 2015, suggesting a blatant disregard for Nigeria’s Federal Character principle, SaharaReporters can report.

SaharaReporters gathered that NIRSAL Bank has consistently appointed only Northerners as Managing Directors since its inception in 2015. 

Furthermore, an astonishing 80% of its core staff also hail from the Northern region.

Findings revealed that the agency has had four different Managing Directors in the last nine years, yet none of them originated from any of the seventeen states that comprise the country’s southern region. 

Aliyu Abdulhameed, the first MD appointed in December 2015, came from Adamawa state. In December 2022, Aliyu was succeeded by Saad Hamidu, who is also from Adamawa. 

Former President Muhammadu Buhari appointed Abbass Masanawa, a Katsina native, as managing director of NIRSAL Bank in April 2023. Bola Tinubu, the current president, later replaced Abbass with Saad Hamidu on October 24. 

A source privy to the situation told SaharaReporters  that “The appointment of Mr. Babajide Arowosafe (SW) as MD/CEO in September 2024 was rejected by the powers that be and replaced by Alhaji Saad Hamidu, who retired last week from the Central Bank of Nigeria after attaining 60 years of age. Alhaji Saad Hamidu’s appointment is believed to have been influenced by a prominent politician from Adamawa.” 

The source added: “All the MD/CEOs appointed from inception to date are from the Northern Region.  80% of core staff are from the Northern Region. Majority of programs/interventions are domiciled in the Northern Region.”

These developments are a clear breach of the Federal Character Principle in Nigeria. The principle was borne out of the need to ensure evenness in spreading government appointments to promote inclusion, representation, a sense of belonging and balance in the polity. 

The underlying philosophy of the federal character principle is providing equality of access in public service representation to curb dominance by one or a few sections.

The principle was first introduced into the constitution in 1979 for public offices and federal institutions to reflect Nigeria’s various diversities.

SaharaReporters learnt further that the current board of the bank consists of four individuals from the northern region with only two from the southern region. 

They are: “MUHAMMAD SANI DATTIJO – CHAIRMAN

(DEPUTY GOVERNOR ECONOMIC POLICY CBN) North West,  SAAD HAMIDU – MD/CEO from North East, ALHAJI ADO WANKA – NON EXECUTIVE DIRECTOR NE, HON SHEHU BALARABE – NON EXECUTIVE DIRECTOR from North West, DR. DAPHNE DAFINONE – NON EXECUTIVE DIRECTOR from South South, and DR. BANKOLE ALLIBAY – NON EXECUTIVE DIRECTOR from South West.” 

SaharaReporters also gathered out of the 15 departments in the bank, two: strategy and corporate communication were headed by individuals from the southern region, and the rest were dominated by people from the Northern regions.  

SaharaReporters recently reported how multiple sources revealed that contract staffers at NIRSAL’s field offices in the 36 states and the Federal Capital Territory (FCT) had deep-seated grievances.

Despite being instrumental in executing the organisation’s grassroots initiatives and engaging directly with farmers, the staff members were subjected to grossly unfair compensation and lack essential benefits.

Below Par Compensation

According to sources within NIRSAL, contract staffers are paid significantly less than their core staff counterparts at the headquarters in Abuja. Field officers, who are supposed to earn N375,000, receive a meagre N158,000—less than 50% of the standard pay.

This pay discrepancy has been a longstanding issue, dating back to when operations were managed by consultants. Despite the direct takeover by NIRSAL’s head office, expectations of fairer compensation were dashed as the pay remained inadequate.

An aggrieved staff member had said, “It’s actually maltreatment because we, the contract staff, handle all the activities right from onboarding farmers to other operational tasks, yet our payment is just below 40% of what we’re supposed to receive.

“Initially, we were getting N132,000, which later increased to N145,000. But even after the head office took over, we are still only getting N158,000, while core staff earn up to N375,000 and above.”

The disparity in pay is compounded by the absence of benefits and allowances for contract staff. Unlike their counterparts, contract staff receive no health insurance or transportation allowances, making them entirely dependent on their inadequate monthly salaries.

“There is no provision for health insurance or any other insurance or allowances. Everything in our lives depends on our monthly salary. This is why we feel we have been financially maltreated,” the source had continued.