Why are Nigerian Banks Sacking Their Workers? – Possible Reasons and Solutions

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Recently, there have been lots of mass sacking of bank workers by some banks in Nigeria.

Most banks have rendered thousands of their workers jobless, thereby increasing the rate of unemployment in the labour market.

This has kept so many people wondering why the sudden mass sacking of workers in this recent times? If you recall vividly some few years back this was not so, so many years back, a lot of people were vying to work in a bank.

Nigerian Banks
credit: nigeriacommunicationsweek

Back then, the Nigerian bank was robust, full of life and was considered one of the most advanced sectors in Nigeria’s economy. Year in, Year out, billions are posted on the their annual reports. Everything was fine. GTB even had to set aside some billions of naira for miscellaneous. That should be a sign of a very healthy company.

But this is not the story now, there is no longer job security in the banking sector.

Almost every time all over, you hear of one bank making plans to lay off some of their staff or you hear about another that has already sacked hundreds or thousands of their staff.

This high rate of sacking has caught the attention of almost everyone. People seem to be eager to know what exactly is going on in the banking sector.

Thus, the Bankers’ Committee of the Central Bank of Nigeria (CBN) on Thursday June 9, 2016 at its 327th meeting held at the headquarters of the CBN in Abuja gave assurance that the rate of mass sacking in banks would be reduced within the shortest time possible.

However, in my own opinion, I think the introduction of TSA, and the halt in payment of subsidy and blockage
of corruption by this present administration of change, came into full swing in 2016. Hence, the once vibrant Nigerian financial industry is a shadow of itself. Only in one year.

Possible reason for the massive sack
The Nigerian banking sector thrives on some pretty bad investment decision and one sided economic policies, which of course had been beneficial to them until now.

Some Nigerian banks believe in building estate as an investment. However, in a more advanced and civilized society or part of the world, real estate is a cool business.

Mortgages are available for the people for up to 35years and the payment option is flexible and transferable. But over here, the reverse is the case; you are expected to pay once, and even if a form of mortgage is available, it is not flexible and mostly over priced.

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Imagine a civil servant receiving an annual income of 2.4million naira (200000 every month), how do you expect him/her to pay 7million for a 2 bedroom flat at agege for 2years mortgage.

Hence, the banks target top government officials and other prominent people in the society, thereby leaving the average person behind. This has also resulted to some of the estate being empty. Most banks do ‘not really’ serve the masses, their attention is shifted to those whom they know they can benefit a lot from.

All those practices of cheap money and laziness has been cut/stopped by this administration, now they are left with almost nothing to fall back on. Hence, had to minimize or cut down on cost or top heavy management structure.

What The Bank Should Be Doing
Massive sacking of the bank workers, is not really the ideal thing to do. The banking sector is in shambles because of their wrong doings.

The banks should lead in the FG’s effort in diversification of the economy. They should invite young and intelligent people to partner with in the areas of agriculture, ICT, human capital development and innovation. Without a proactive financial sectors the country is going no where. They should run a partnership with SMEs by providing soft loans or equity for them. The SMEs are the blood of the economy. People, groups and businesses play a major role to grow a nation’s economy with some significant backup from the government.

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About Abuku Orode 437 Articles
My name is Abuku Orode, I am a full time blogger and article writer. I make research on the best, possible and legal way to enhance your tech life, finance and other survival tips and make them available here on Cashrange. My goal is to show you what works for me in the hope that it will work for you too. Best Regards [Cashrange]

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