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CBN: Banks no longer allowed to sack more than 5 staff without approval

Central Bank of Nigeria (CBN) has given a stern warning to all banks that they must seek its consent if they must sack more than five staff.

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CBN issues directive to curb mass sacking by banks

Central Bank of Nigeria (CBN) has given a stern warning to all banks that they must seek its approval if they must sack more than five staff. This was stated in the communique released by the Bankers Committee after its meeting on Friday.

The committee, in a circular signed by Director, Financial Markets Department, CBN, Angela Sere-Ejembi, emphasized that all banks should send sample of Contract Letter issued to outsourced staff + SLA  with the company being used to run outsourced staff.

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It stated, “Banks should note and be guided by the CBN circular in respect of laying off staff that is more than five. This requires apex bank’s notification and approval going forward.”

READ ALSO: Ecobank raises $200 million credit facilities)

The Bankers’ Committee had said the mass sacking in banks would be reduced in the shortest time possible.

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The committee noted that while it was working on how to reduce the level of job losses in the sector, there would always be reasons people would have to be sacked from their workplaces.

It explained that while the decision to sack bank workers had elicited a lot of sentiments from both the public and private sectors of the economy, the banks understood the implications of having to relieve workers of their jobs in view of the current economic situation in the country.

Meanwhile, Nairametrics had reported that several banks have sacked several thousands of their staff. While some of the workers were served their dismissal letters without serverance packages, others were not that lucky, as they were not informed officially but got blocked from accessing the bank’s server.

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For instance, most of the Ecobank Nigeria Plc workers under the auspices of the National Union of Banks, Insurance and Financial Institutions Employees (NUBIFIE), shut down the headquarters of the bank following the disengagement of about 1200 workers in July last year.

The workers, with their placards, took to the bank’s head office to protest their disengagement, insisting that the bank should pay their commensurate benefits.

[READ MORE: NSE to dialogue with CBN over banks’ recapitalisation plans]

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Ecobank is not the only financial institution involved in mass sack. In most cases, some of the banks described the exercise as ‘right sizing’. But the concept could be confusing, as they recruit more staff shortly after the exercise.

 

 

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Patricia

Abiola has spent about 14 years in journalism. His career has covered some top local print media like TELL Magazine, Broad Street Journal, The Point Newspaper. The Bloomberg MEI alumni has interviewed some of the most influential figures of the IMF, G-20 Summit, Pre-G20 Central Bank Governors and Finance Ministers, Critical Communication World Conference. The multiple award winner is variously trained in business and markets journalism at Lagos Business School, and Pan-Atlantic University. You may contact him via email - [email protected]

10 Comments

10 Comments

  1. Anonymous

    February 22, 2020 at 8:47 pm

    So are you afraid to call the name of the bank that threw their staff that made them what they are today. In the likes of UBA.

  2. Akeju Olagbaju

    February 23, 2020 at 8:05 am

    What a stupid policy.The bank can decide to sack 100 in batches of 4 daily within a month. No law can guide hire and fire .

  3. Acha

    February 23, 2020 at 12:09 pm

    UBA PLC also sacked over 5000 workers 3rd January,2020. Since then I vowed non of my relatives will work in banking industry

    • 9jaRealist

      February 24, 2020 at 4:58 pm

      Good for you. Agriculture is looking for lots of workers.

  4. Kinxben

    February 23, 2020 at 3:00 pm

    This report is apt. They sack top managers and turnaround to bring in their own persons from other banks or institutions not Bank related. And one begins to wonder what the sacks were intended!

    • 9jaRealist

      February 24, 2020 at 5:01 pm

      Why won’t they bring in their “own persons” (whatever that means)? Are banks government institutions? When they were taking the risk of setting up these banks, where were your “own persons”?

      • Anonymous

        February 24, 2020 at 11:44 pm

        Sense of entitlement sky high.how can you dictate to someone how to run their business that you didn’t take the risk for and you don’t take any risk for it’s failure?

  5. 9jaRealist

    February 24, 2020 at 5:07 pm

    Only in a failed state like Nigeria would failed governments that struggle to timely pay the full salaries and pensions of its own workers and retirees, and cannot properly run its own government-own parastatals, be dictating to successful private businesses how to hire and fire workers. Just enact proper labor laws for everyone (not just banks) and get out of way of private risk takers. SMH

  6. Tutu yege

    March 5, 2020 at 10:53 am

    UBA SACKED OVER 5000 ON JANUARY 3RD 2020 WITHOUT ANY REASON.

  7. Tutu yege

    March 5, 2020 at 10:59 am

    Useless UBA sacked so many and Tony even called them TOXIC INPUTTERS. #111bn profit at year end 2019 generated by these same people he called TOXIC INPUTTERS.
    GOD WILL JUDGE THEM ALL.

    RUBBISH

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Appointments

AfDB appoints Rabah Arezki as new vice president and chief economist 

Before Arezki joined the World Bank, he worked at the International Monetary Fund (IMF).

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The African Development Bank Group (AfDB) has announced the appointment of Dr Rabah Arezki as  Chief Economist and Vice President, Economic Governance and Knowledge Management, with effect from October 1, 2020. 

This was disclosed in a press statement on the bank’s website on July 13, 2020. 

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Dr Rabah Arezkiwho is an Algerian citizen, is currently the Chief Economist for Middle East and North Africa Region at the World Bank, a role he has held since 2017. 

At the World Bank, he led the development of the Bank’s “moonshot approach” for the Middle East and Africa which aims to achieve full internet and digital payment connectivity. He championed the agenda on fair competition, data and transparency to empower and unlock the potential of the region’s youth. 

Before Arezki joined the World Bank, he worked at the International Monetary Fund (IMF) from 2006 to 2017. He started his career at the IMF as an Economist and became the Chief of the Commodities and Environment Unit in the Research Department. He provided leadership on IMF’s rapid response to the historical collapse in oil prices that started in 2014. He advised authorities all around the world on risk mitigation policies. 

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Dr Arezki is a senior fellow at Harvard University’s John F. Kennedy School of Government, an external Research Associate at the Oxford University, UK, a research fellow at the CESifo, a global independent research network. Dr. Arezki is also a resource person for the African Economic Research Consortium and a Research Fellow at the Economic Research Forum. He has been a non-resident Fellow at the Brookings Institute, USA. 

He has published extensively both in top academic journals and policy-oriented outlets and is a co-editor and co-author of five books including Shifting Commodity Markets in a Globalized World. Many of his research papers have been cited extensively in academic circles and in prominent media outlets.  

In his statement after his appointment, Dr Arezki said, The African Development Bank is making excellent progress in accelerating Africa’s development. I am excited with the opportunity to work with President Adesina and the Bank’s leadership and teams to further provide top notch policy, knowledge and capacity building support for African countries.” 

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Dr Arezki holds a Masters in Economics and Statistics from Ecole Nationale de la Statistique et de l’Administration Economique (ENSAE) – France (2003), and a PhD in Economics from the European University Institute – Italy (2006). He is multilingual and fluent in French, English, and Arabic. 

In his own response, the President of the African Development Bank Group, Akinwumi Adesina, said, I am delighted that Dr. Rabah Arezki is joining the African Development Bank Group following an impactful career at the World Bank and the IMF. Rabah is an outstanding researcher and policy expert with extensive experience in research, policy and reforms.” 

“His leadership will be especially important as the Bank designs and deploys policy-based operations to address COVID-19, advances policy reforms, and supports African countries growth recovery efforts from the pandemic,” Adesina added. 

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Corporate Press Releases

NSE simplifies investing in the capital market with comic book

StockTown is dedicated to providing financial literacy education to Nigerians.

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The proliferation of dubious investment schemes that often result in loss of money by unsuspecting members of the public continues to make the role of financial literacy imperative. To play its part, Nigeria’s leading bourse, The Nigerian Stock Exchange (NSE or The Exchange) has issued the second edition of its comic, StockTown, dedicated to providing financial literacy education to Nigerians.

The comic, available in digital format on a dedicated website at www.nse-stocktown.com builds on The Exchange’s advocacy for safe and trusted investment schemes.

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The story picks up from the first edition, following the life of Mora Johnson as she seeks to liberate her family from their financial struggles by investing in the capital market. This second edition highlights some major lessons for potential and existing investors including the need for vigilance in avoiding Ponzi schemes and unregulated investments, whilst advising prospective investors to seek proper guidance before making investment decisions. Readers can look forward to a simplified explanation of the history of the capital market, its evolution over the years, and how anyone can start making investments today in the Frequently Asked Questions (FAQs) section of StockTown.

Commenting on the importance of this comic book, Head, Corporate Communications, NSE, Olumide Orojimi said, “Investor Education is a priority for us at The Exchange. We have identified the need to empower individuals across all levels to make good financial decisions and better their lives now and in the future. As the investment landscape continues to evolve to accommodate more retail participants, we are excited to leverage new and existing platforms to present investment products and processes in ways that are both appealing and easy to understand, particularly in this new normal. We hope that StockTown becomes a widely-read resource for potential and existing investors, the financially excluded, millennials and the larger public.”

StockTown is just one of the many ways NSE demonstrates its strong commitment to promoting financial literacy in Nigeria. Even amidst the Coronavirus pandemic and the temporary closure of The Exchange’s facilities, NSE continues to host virtual financial literacy workshops with students and young upwardly mobile professionals. Furthermore, The Exchange has hosted several webinars on various products including Exchange Traded Funds (ETFs), Green Bonds, and Securities Lending to provide more information to the market on available securities and how to trade them.

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It should also be recalled that NSE is a member of the Financial Literacy Technical Committee of the Securities and Exchange Commission (SEC); as well as the National Finance Inclusion Steering Committee led by the Central Bank of Nigeria with a mandate to reduce the level of financial exclusion in Nigeria to 20%.

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Hospitality & Travel

5th evacuation flight for Nigerians in the US scheduled for July 31; see details

The evacuees are to forward the details of tickets and contact addresses of their next of kin.

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5th evacuation flight for Nigerians in the US scheduled for July 31; see details

The Federal Government has approved the 5th Evacuation flight for Nigerians stranded in the United States of America, for July 31.

According to a tweet from the Minister for Foreign Affairs, Geoffrey Onyeama, the Ethiopian airline, flight number ET547 will leave George Bush international airport Houston, Texas on Friday 31, July 2020 by 16:00 hours and arrive Murtala Muhammed International Airport Lagos on Saturday 1st August 2020 by 20:00 hours.

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An official statement released by the Consulate General of the Federal Republic of Nigeria, Atlanta, Georgia in collaboration with other Nigerian missions in the United States of America, states that Nigerians registered with any of the three Nigerian missions in the USA, and interested in boarding the flight, can purchase their one-way tickets.

“The airfare is $1,500 for economy class and $3,000 for business class for adult/child fare, including all taxes, with the usual percentage reduction for infants under 2 years,” it read.

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In addition, the intending evacuees are also expected to forward the details of purchased tickets together with the contact address of their next of kin in Nigeria to the consulate.

READ MORE: FG states international passengers to arrive 5 hours before departure, discloses other protocols

In line with the protocols announced by the Presidential Task Force on COVID-19, all of the returnees are to present a negative COVID-19 test result (not older than 14 days), and undergo a temperature check before boarding the evacuation flight, and upon arriving Nigeria, are expected to proceed on a 14-day self-isolation.

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In the last couple of months, the federal government, through the ministry of foreign affairs has evacuated hundreds of stranded Nigerians from different countries including the United States of America, the United Kingdom, Egypt, Malaysia, and Thailand.

The returnees bear the cost of their flight tickets and are expected to self-isolate for two weeks, upon their return to Nigeria. Returnees, who receive a clean bill of health after the isolation, are given their passports and allowed to go home.

 

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