Union Warns Against Casualisation Of Nigeria’s Financial Sector

The President of the Association of Senior Staff of Banks, Insurance and Financial Institutions (ASSBIFI), Olusoji Oluwole, has warned that the rising trend of casual and contract employment in Nigeria’s financial institutions poses long-term risks to workers’ welfare, institutional stability, and national development.

Speaking at the LACAN Annual Labour Conference in Abuja, Oluwole said the once-structured staffing system in banks comprising clerks, supervisors, and officers on clear career paths has given way to a model dominated by outsourced and temporary staff.

He noted that about 60 per cent of the operational workforce in Nigerian banks now serve under contract arrangements, a shift he described as a cost-saving measure that has become a permanent practice.
Oluwole explained that the practice, which began in the early 2000s with the outsourcing of support services such as cleaning and dispatch operations, gradually extended to core banking functions.

While the arrangement helped banks cut costs and raise profits, he said it had created a two-tier workforce marked by inequality, insecurity, and limited growth opportunities for young professionals.

He pointed to unemployment pressures as another driver of casualisation, noting that while the National Bureau of Statistics had reported a decline in joblessness, it cannot be confidently said that there has been an increase in permanent staff recruitment.

According to him, casual workers face salary disparities, lack access to pensions, and endure uncertain contract renewals all of which affect their morale, productivity, and mental health.

For employers, he warned, the reliance on cheap labour exposes institutions to fraud, espionage, and reputational risks, while the economy at large suffers from underutilised talent and the migration of skilled workers.

Calling for reform, Oluwole urged the Federal Ministry of Labour and Employment and financial regulators to enforce existing guidelines on non-permanent workers issued in 2022.

He also recommended a review of the Labour Act, renewed investment in staff training especially in digital and artificial intelligence skills and the abolition of rigid age-to-grade policies that discard experienced professionals.

He said, “Profitability has always been a major focus for organisations in the private sector, but cost-saving must not come at the expense of human dignity. Contract workers earn less, lack pensions, and have no clear career paths, which breeds insecurity and frustration.

“The psychological and health strain from prolonged casual employment can lead to depression and unethical behaviour. The economy loses when skills are underutilised, and young people are pushed to migrate in search of fairer opportunities.”