Banks’ Sack Gale: CBN Intervenes After Outrage

By Fola James

Access Bank Plc staff who were recently sacked by the bank’s management, now have a reprieve: they can go back to work after the Central Bank of Nigeria, CBN has intervened on their behalf.

Recall that the managing director of the bank, Herbert Wigwe on Wednesday directed that 75 per cent of the staff strength be relieved of their posts due to the economic situation caused by the corona virus pandemic.

The magazine learnt that many employees of the bank have already received their sack letter.

Apart from Access, other banks, the magazine was told have already decided to sack many of their staff as work resume tomorrow,  following federal government’s decision to partially ease the lock down  across the country.

But that would no longer happen, at least for now, following the meeting the apex bank governor, Godwin Emefiele, had with the Bankers Committee where it was agreed that banks should halt the planned massive retrenchment.

According to the statement by the Director of Corporate Communications, Isaac Okoroafor, no sack of either permanently or Adhoc staff can be carried out by any bank without the approval of the regulator.

The statement reads in full, “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. ALSO READ: CBN lifts suspension on cheque clearing

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 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)”

The CBN said it has not granted approvals to banks to lay off workers.

“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 challenge of COVID 19,” the apex bank said.

Meanwhile, the magazine learnt that the measure is a temporary one that cannot last the test of time, as banks would have no option than to reduce the strength of their workforce as a way of cutting down rising operating cost.

“For instance, will the CBN picks the wage bill for the banks. What needed to be done will be done in the face of the current economic reality,” an analysts told the magazine on Sunday