CBN, Banks Agree to Suspend Mass Retrenchment

By Adedapo Adesanya

Nigeria’s banking sector regulatory agency, the Central Bank of Nigeria (CBN), and deposit money banks in the country, have agreed to stop a massive retrenchment of workers aimed to maximise their operating costs in the midst of the coronavirus pandemic.

This disclosure was made known in a statement released on Sunday evening by the Director, Corporate Communications, CBN, Mr Isaac Okorafor.

As the country prepares to gradually resume some essential economic activities, banks have started to retrench workers so as to be able to meet up to the challenges that lay ahead post-COVID-19.

This decision has since been met with public disapproval, with many emphasising that majority who will lose their jobs are the most vulnerable members of the society.

The apex bank said it convened a meeting with the banks to review the economic effect on the proposed action on the workers and their families, especially at such a difficult time.

It said, “A special meeting of the Bankers’ Committee was convened on May 2, 2020, to further review the implications of the COVID-19 pandemic on the Nigerian banking industry.

“The committee particularly deliberated on the issue of the operating costs of banks in view of the disruptions emanating from the global economic difficulties and decided as follows:

“In order to help minimize and mitigate the negative impact of the COVID19 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).

“To give effect to the above measure, 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.

“The Central Bank of Nigeria solicits the support of all in our collective effort to weather through the economic challenges occasioned by the COVID-19 pandemic.”

Banks will open for business between the hours of 8am and 2pm from Monday, May 4, according to the federal government; while in Lagos State, Governor Babajide Sanwo-Olu stated that banking halls will open from 9am till 3pm.