A recent labour report revealed that 80 percent of employees in Nigeria’s banking sector are engaged in casual employment. Given the humongous profits these financial institutions declare, this is a matter of grave concern that demands immediate attention.
For the record, the banking sector has been indisputably one of the most buoyant in the country’s economy in the past two decades. Indeed, some of these institutions have successfully internationalised their operations, establishing offices in other African nations as well as in Europe and America.
However, while these banks generate significant wealth for their top executives and shareholders, the majority of their workers find themselves in a precarious position, akin to the adage: “Those in the middle of the river but washing their hands with spittle.” This predicament stems from the troubling trend of increasing reliance on casual workers, frequently denied the rights and benefits afforded to their full-time counterparts.
Casualisation refers to employing workers on temporary or flexible contracts rather than offering them permanent positions. In the banking sector, this trend has escalated beyond traditional roles, such as security and cleaning staff, to encompass highly skilled positions. As banks endeavour to reduce costs, they are increasingly opting for cheaper labour, leaving many workers uncertain and financially vulnerable. This is particularly alarming given the banks’ pivotal role in the economy and society. This shift towards precarious employment not only undermines the dignity of work but also poses severe risks to the stability and integrity of the banking system.
The factors driving this trend are manifold. Banks’ relentless pursuit of cost reduction has fostered the proliferation of temporary contracts, exacerbated by a labour market characterised by high unemployment rates, which fuels desperation among job seekers.
Many individuals are willing to accept casual roles, often at significantly lower pay and with fewer benefits, simply to secure employment. Compounding these issues is a lack of proactive measures by oversight and regulatory authorities to ensure that bank workers receive their due: decent work for decent wages.
The consequences of casualisation extend far beyond the individual worker. The integrity of the banking sector is jeopardised when a substantial portion of the workforce is left unprotected. This not only affects employee morale but also impacts the quality of service rendered to customers. When employees feel insecure and undervalued, their productivity and commitment to their organisations inevitably suffer. It is little wonder that some bank staff have been implicated in collusion with fraudsters to defraud customers. Moreover, banks are losing many of their employees, particularly technical staff, to the ‘Japa’ syndrome, wherein many young, upwardly mobile Nigerians emigrate for better opportunities abroad. If they were offered a supportive working environment, this exodus might be curtailed.
Furthermore, casualisation within the banking sector presents a broader societal challenge. It fosters a two-tiered labour system in which many workers are relegated to a precarious existence, lacking access to essential benefits such as health insurance, retirement plans, and paid leave. This exacerbates economic inequality and undermines the principle of decent work, which should be accessible to all.
As a newspaper, we urge the Nigerian banking sector to address the casualisation crisis urgently. This necessitates a multifaceted approach, commencing with implementing robust labour laws that protect the rights of all workers, regardless of their employment status. Section 7(1) of the Labour Act stipulates that a worker should not be employed for more than three months without formal recognition of such employment. After three months, every worker must receive an employment letter outlining the terms and conditions of their employment from the employer. However, there is no legal framework for the regulation of the terms and conditions of casual workers, and many companies have largely ignored this law. They often engage in systematic and deliberate violations, renewing contracts every three months while feigning layoffs to rehire workers again for another three-month term. Consequently, some workers have endured such conditions for over a decade.
This issue is not confined to the banking sector; the oil industry reportedly casualises as much as 93 per cent of its workforce. The menace of casualisation is not restricted to the private sector; government agencies, including hospitals and educational institutions, also engage in this detrimental practice.
We urge the Ministry of Labour and Employment, labour unions, federal and state legislators to take decisive action to counter this trend of exploitation across all sectors of the economy. Trade unions and labour organisations must play a pivotal role in raising awareness about the implications of casualisation. They should strive to mobilise workers to demand fair treatment and improved working conditions, fostering a culture of solidarity among employees.
Even more importantly, banks must reassess their employment strategies. Investing in a stable workforce enhances productivity, fosters loyalty, and improves customer service. A workforce that feels valued and secure is essential for the sustainable growth of any organisation. The Nigerian banking sector and other sectors that engage in extensive casualisation must recognise their role in generating employment and upholding the dignity of labour. This is not solely a governmental responsibility.
