Central Bank Of Nigeria Stops Banks From Sacking Their Workers

The Central Bank of Nigeria (CBN) has suspended the ongoing staff layoffs by some banks in the country.

The apex bank corporate communications director Isaac Okorafor made the disclosure in a statement on Sunday.

“In order to help minimize and mitigate the negative impact of the COVID-19 pandemic on families and livelihoods, no bank in Nigeria shall retrench or lay-off any staff of any cadre (including full-time and part-time),” Okorafor said.

This is coming after a few banks have resorted to lay off staff and also cut down staff salaries.

Nigeria’s Access Bank Plc is one of the banks planning to cut staff salaries to avoid laying off as coronavirus continues to ravage the world and affect global economies, Bloomberg reported.

Bloomberg on Friday reported that “people with direct knowledge of the matter” said the pay cuts are expected to start from May unless business conditions improve.

Apart from the coronavirus troubles which forced many banks to close some of their branches and allow staff to work from home, crash of oil prices and the threat of another naira devaluation pose a great threat of rising bad-debt levels for banks.

To avoid the economic crisis on the bank, CBN said there will be a review the implications of the COVID-19 pandemic on the Nigerian banking industry after their special committee meeting.

The committee, the CBN noted “deliberated on the issue of the operating costs of banks in view of the disruptions emanating from the global economic difficulties.”

Okarafor stated that “the express approval of the Central Bank of Nigeria shall be required in the event that it becomes absolutely necessary to lay-off any such staff.”