The headline above seems a little inappropriate given the earnings of Bankers, vis-à-vis statistics on salaries and wages in the Nation.
The average Nigerian Banker earns at least four times the poorly implemented National minimum wage of N18,000; gets his pay promptly without being owed arrears, and enjoys other employment benefits, such as healthcare, without hassles.
Why then would these privileged few, whose wage bill cost the 13 NSE listed banks, a whopping N178b in the first three months of 2020, lockdown notwithstanding, need to supplement their already impressive income?
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Simple, because they need to meet up with their financial obligations.
The expectations are high for anyone with a decent job in a country where the unemployment rate is currently 27.1%, and where 28.6% of its population are underemployed.
The expectations are even higher for those whose work is in the banking sector, of whom it is erroneously believed, have access to unlimited funds, and an endless flow of credit facility, because they facilitate the consummation of volumes of such transactions daily.
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The peculiarity of HR policies in Nigerian banks does not allow for ‘helping’ of relatives into the same system, as is obtainable in the Nigerian Civil service. Hence, the basic assistance which Bankers can offer their ever-expanding network of dependants is direct financial aid, forcing them to engage in moonlighting activities to meet up the ‘hype’.
The activities below are from close observation and interactions with Nigerian Bankers.
Forex dealings
The existence of different exchange rates, coupled with the scarcity of FX for most sectors of the economy has given rise to opportunities for arbitrage and round-tripping. Most bankers, who by virtue of their jobs have become privy to their customers’ FX needs, are able to broker deals; matching the demand of FX with supply, and earning handsome margins in the process. Gratitude, loyalty, and referrals from their customers are an added bonus for flouting their Bank’s internal policies on staff participation in FX dealings.
Such dealings have in recent times expanded to include transactions in cryptocurrencies.
Personal professional practice
Nigerian Banking industry is a melting pot of various first degrees, with some using their bank jobs as a stop-gap for their employment problems, as they seek to improve on their chosen professions. Hence, it is not uncommon to see bankers start and run their startups in other fields, while still in paid employment of their banks.
Although, the Banks are likely to frown on not getting 100% commitment from their employees; they continue to provide a rich base of potential clients for these startups and have been their customers too.
Sports betting and Mobile Money agencies
Sports betting in Nigeria has opened up a new world of investment possibilities for sports enthusiasts and shrewd businessmen. Since 2009, when the first online sports betting site launched in Nigeria, over twenty more have joined to compete for the market in Africa’s most populous black nation, and they all seem to be thriving, as each sports competition sees the unveiling of another sports betting site in Nigeria.
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Bankers, with their knowledge of the industry figures, have had a first mover’s advantage in being agents of these sport betting firms.
The same holds true for Mobile Money agencies, where Bankers have been known to use the influence of their office to expedite mobile money agent approvals and secure POS terminals, which have consequently become inaccessible to the common man.
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Other activities
As with most business endeavours, Bankers generally indulge in businesses, in which they have a comparative advantage. Bankers in big cities use their cars to run shifts under popular cab-hailing services; some moonlight as real estate agents, because they can match customers with their real estate needs. A few others have become millionaires, by investing in their customers’ businesses. The possibilities are endless, as Bankers seek to make ends meet through their ingenuity, while staying relevant in their careers.
Explore the Nairametrics Research Website for Economic and Financial Data
Cyprian Ekwensi in his classic novel ‘Chike and the River’, made popular the phrase of a man who lives by the bank of the Niger, washing his hands with spittle. Sadly, this has become the lot of most Nigerian Bankers, as they live from paycheck to paycheck, exploring one loan option to pay off a previous loan, even as they condescend to their customers in volunteering financial advice, that they are better off implementing in their personal finances.
No one is immune to the economic squeeze our double-digit inflation has brought on fixed income earners, especially not our beloved bankers.
I believe this article shows how much financial journalism has deteriorated in Nigeria. It is full of gross characterization, baseless assumptions, and pointless meandering around a subject that should normally be reserved for a roadside beer parlour.
Bank workers like every other worker in both the private and public sectors have been exposed to the economical hassles that currently plague our nation such as galloping inflation, failing infrastructure.
The write-up makes it seems that the average banker in Nigeria is being pampered, overpaid, over-privileged, and not deserving of the benefits and compensation which they receive for the work they do. It is common knowledge that the banking sector is one of the few of the thriving sectors in the economy, hence its attraction to the troves of graduates and job seekers that our educational institutions churn out daily. That the sector is performing well is a testament to the workout and productivity of its human capital (workers). The work expectations of bank employees are enormous as they face a lot of work pressure, put in long hours, enjoy no work-life balance, and have to meet up with nightmarish targets. The workplace is highly competitive and stressful. Consequently, they deserve every single “high” pay and benefits they earn…and the quality/quantity of this is simply a reflection of the economic value they create through their work for the shareholders and investors.
There is nowhere in the world were the earnings of financial workers are not well above the national minimum wage and civil service. Therefore, picking on Nigerian bank employees and depicting them as overprivileged workers is really in poor taste. The assertion that the current salaries of bankers are “impressive” is devoid of relative deduction. No attempt was even made to compare to what their peers earn in comparable economies.
Lastly, the various “moonlighting activities” that was stated that the bank workers delve to “meet the hype” is atypical of workers in every profession. As growth in the economy declines and inflation heightens, living conditions a declining economic clime and inflationary, people tend to seek out additional/multiple streams of income to meet up with the growing cost of living expenses. So casting bank workers are ungrateful, scrupulous, insatiable, and greedy individuals reflect the deep biased and bitterness that the writer has towards bank workers and the reason for this needs to be unearthed.
Dear Demola. Calm down. Your reply is full of the same assumptions you accused the writer of. Kindly re-read the piece without bias and without taking it personal, this will be helpful. Regards
Hi Demola,
This feels a little too personal. There is no intention on my part to denigrate Bankers or their ”hustle” in this piece.
Kindly reread it without the bias of your being a Banker, or it being authored by me. I am also open to further enlightening discussions with you.
Thank you.
HI DEMOLA, I feel your bitterness, life is all about perception, the lens you wear in life, will either make you richer or poorer.
immediately I saw this article, I blessed the writer cause he/she has given me an idea i will use to teach bankers online to use to create extra income streams, to make more money, this idea alone will make me millions.
if you wear glass with a red lens, everything you see in life will be red, if you wear a black lens everything you see will be black
so I ask you again to read this article again to see clearly the opportunities hidden in it, not the attack.
clean your lens, my brother/sister, life is not that hard!
I wish you peace!!!