Labour Unions Express Concerns Over Job Security Amid Bank Recapitalization
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The Nigeria Labour Congress (NLC) and the Association of Senior Staff of Banks, Insurance and Financial Institutions (ASSBIFI) have raised concerns regarding job security amidst the Central Bank of Nigeria’s (CBN) directive for new banks’ recapitalization.
Reports indicate that similar exercises in 2005 and 2010 resulted in the loss of 12,000 jobs. The recent directive by the CBN under the leadership of Mr. Olayemi Cardoso mandates banks to meet new capital base requirements within two years.
During previous recapitalization exercises led by Prof. Charles Soludo and Lamido Sanusi in 2005 and 2010, respectively, the number of commercial banks decreased significantly, resulting in job losses.
NLC President, Joe Ajaero, highlighted the impact of economic policies on banks’ capital bases, leading to the need for recapitalization. He expressed concerns about potential job losses, mergers, and acquisitions in the banking sector, as well as the strain on industrial relations.
Similarly, ASSBIFI President, Olusoji Oluwole, acknowledged the benefits of increased capitalization for banks and the economy but emphasized the potential implications for job security. He noted ongoing discussions with relevant stakeholders to address concerns about mergers, acquisitions, and compliance timelines.
Both unions underscored the importance of safeguarding workers’ interests and called for proactive measures to mitigate the impact of recapitalization on employment and the economy. They urged the government to ensure adequate protection for workers’ deposits and buffer funds amid the restructuring of the banking sector.
