Banks’ Recapitalisation: After 12,000 Jobs Lost in 2005, 2010, NLC, Bankers Worry

The Nigeria Labour Congress, NLC, and the Association of Senior Staff of Banks, Insurance and Financial Institutions, ASSBIFI, have raised concerns over job security among others in the new banks’ recapitalization ordered by the Central Bank of Nigeria, CBN.

This follows reports that similar exercises in 2005 and 2010 resulted in the loss of 12, 000 jobs.

You will recall that the CBN governor Olayemi Cardoso had directed another round of banks’ recapitalisation last week making the third in the series since the advent of civil rule in 1999.

Under the new rule, the CBN gave two years for banks to meet a new capital base of N500 billion for international operations, N200 billion for national operations and N50 billion for regional operations and merchant banking licences.

The CBN, during the regimes of Professor Charles Soludo and Lamido Sanusi, conducted recapitalizations in 2005 and 2010, respectively

While Soludo’s recapitalisation policy reduced the number of commercial banks from 89 to 24, that of Sanusi reduced the banks to about 20.

During the two exercises, reports claim that no fewer than 5,000 direct employees lost jobs while over 7, 000 indirect staff engaged as casuals, contract and outsourced employees lost their jobs.