Helpless Economics: FG Orders Nigerian Banks To Stop Sacking Workers

Helpless Economics: FG Orders Nigerian Banks To Stop Sacking Workers

By Agency Reports on June 4, 2016
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Yemi Osinbajo, Chris Ngige, Abdulaziz Yari, Minimum Wage
Chris Ngige | NAN

NAN – The federal government on Friday, June 3, 2016 directed Nigerian banks, insurance and financial institutions to suspend on-going retrenchment in the sector.

This is contained in a statement signed by the minister of labour and employment, Chris Ngige, and made available to newsmen in Abuja.

Recently, a wave of layoffs have been happening in Nigerian banks with Ecobank Nigeria laying off 1,040 workers. This decision follows the sacking of 50 top management staff by the bank earlier in the year. Diamond Bank and UBA also laid off thousands of staff in the same week.

“Following spate of petitions and complaints from stakeholders in the banking, insurance and financial institutions, I hereby direct the suspension of the on-going retrenchment pending the outcome of the conciliatory meetings in the industry.

“This is as a result of the apprehension by my office of the various disputes in the sector in accordance and in compliance with the provisions of the labour laws of Nigeria,” it said.

The statement said that the decision was further predicated on the fact that the continued retrenchment and redundancy by the sector were jeopardising the outcome of the reconciliatory and mediatory processes undertaken by the ministry.

“In this wise, all the retrenchments and redundancies done in the last four months and all proposed ones should be put on hold.

“Pending the outcome of the proposed stakeholders’ summit for the banking, insurance and financial institutions’ employers and employees, slated for the first week of July 2,’’ the statement read in part.

However, Mr. Ngige advised all parties in the interest of industrial peace and harmony to maintain the status-quo ante-belum.

Several banks have fired thousands of workers, amid an economic crisis. This week, Ecobank has reportedly sacked about thousand staff.

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