Banks’ Recapitalization: Concerns Rise Over Banks’ Recapitalisation: 12,000 Jobs Lost in 2005, 2010


Labour Unions Express Concerns Over Job Security Amid Bank Recapitalization

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The Nigeria Labour Congress (NLC) and the Association of Senior Staff of Banks, Insurance and Financial Institutions (ASSBIFI) have raised concerns regarding job security amidst the Central Bank of Nigeria’s (CBN) directive for new banks’ recapitalization.

Reports indicate that similar exercises in 2005 and 2010 resulted in the loss of 12,000 jobs. The recent directive by the CBN under the leadership of Mr. Olayemi Cardoso mandates banks to meet new capital base requirements within two years.

During previous recapitalization exercises led by Prof. Charles Soludo and Lamido Sanusi in 2005 and 2010, respectively, the number of commercial banks decreased significantly, resulting in job losses.

NLC President, Joe Ajaero, highlighted the impact of economic policies on banks’ capital bases, leading to the need for recapitalization. He expressed concerns about potential job losses, mergers, and acquisitions in the banking sector, as well as the strain on industrial relations.

Similarly, ASSBIFI President, Olusoji Oluwole, acknowledged the benefits of increased capitalization for banks and the economy but emphasized the potential implications for job security. He noted ongoing discussions with relevant stakeholders to address concerns about mergers, acquisitions, and compliance timelines.

Both unions underscored the importance of safeguarding workers’ interests and called for proactive measures to mitigate the impact of recapitalization on employment and the economy. They urged the government to ensure adequate protection for workers’ deposits and buffer funds amid the restructuring of the banking sector.

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Gbenga Samson
Gbenga Samson
Samson Gbenga Salau [Editorial Board Adviser] Gbenga Samuel Salau is a professional journalist with over 17 years experience in journalism, he is a graduate of Communication and Language Arts, University of Ibadan. On completion of his youth service, he joined The Guardian as a freelance journalist and was later absorbed as a staff. While in the University, he was a campus journalist reporting for the Independence Hall and Faculty of Arts Press Clubs. As a campus journalist, he won the following awards; Independence Hall Press Best News writer; University of Ibadan Union of Campus Journalists’ Best News Reporter/Writer; First Runner-up, Reuben Abati Award for Investigative Journalism; Association of Faculty of Arts Students’ Press Best Reporter; University of Ibadan Union of Campus Journalists’ Best Political Writer; Winner, Reuben Abati Award for Investigative Journalism, and University of Ibadan Union of Campus Journalists’ Best Interviewer. He served the Association of Communication and Language Arts Students, as the Public Relation Officer, the same year he was appointed the News Editor of the Association of Faculty of Arts Students Press. The following session, he was made the General Editor, and a member of the 13-man University of Ibadan Students’ Union Transition Committee. As a reporter in The Guardian, in 2014, he won the Promasidor Quill Award Best Report on Nutrition and DAME Business Reporting category. In the 2015 edition of the Promasidor Quill Award, he won the best Report on Nutrition and Brand Advocate Categories, while in 2016, he won the NMMA Print Journalist of the Year, first runner-up Golden Pen Reporter of the Year and SERAs CSR Awards. Gbenga Salau loves traveling, reading, and listening to songs with good lyrics no matter the genre.

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