Banks sack workers, cut working hours over rising cost of operation

About 1,949 banking staff lost their jobs in 2021, bringing the number of staff strength from 92,404 in the first quarter down to 90,455 by the end of 2021 over rising cost operations in the industry.

Analysis shows that most staff that lost their jobs were full-time workers as the banks decided to employ contract staff.

In the first quarter of 2021, there were 197 Executive Staff, 16,750 Senior Staff, 36,594 Junior Staff and 38,863 contract staff to bring the total number of staff in commercial banks to 92,404.

Interestingly by year-end, the figures were 200 Executive Staff, 16,390 Senior Staff, 35,193 Junior Staff and 35,193 contract staff.

According to the National Bureau of Statistics (NBS), commercial banks in Nigeria recorded salaries and employee expenses of over N602 billion in the 12 months of 2021.

NBS stated this in its selected banking sector data report released on its website on Tuesday.

According to the report, the amount spent on staff salaries in 2021 was 14.57 per cent increase when compared to N525.5 billion recorded in 2020.it was gathered that banks’ 2021 staff salaries expenses are the highest since 2018.

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Breakdowns show N516.74 billion was spent in 2018, N597.94 billion in 2019 and N525.58 billion in 2020.

It would be recalled that Banks’ operational costs have continued to rise in recent months over the uptick in inflation, high energy prices, and exchange rate crises forcing some of them to cut down operating hours.

To reduce the impact of these challenges on their profitability, banks like Access Bank and United Bank for Africa (UBA), have cut their work hours.

Meanwhile, Head, Financial Institutions Ratings at Agusto&Co, Mr Ayokunle Olubunmi noted that more banks will be looking at the option of solar powered operations as they strive to reduce the impact of the soaring diesel cost on their operations.

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“What banks are trying to do is how they can reduce the impact to the barest minimum. But despite that, the high cost of diesel is still going to have an impact and what the banks are trying to do is to actually reduce it.

“What has happened over the last three years is that most banks are trying to transition into alternative power supply. Before now most banks relied solely on PHCN or diesel but banks are now bringing in solar panels into the mix, with this we are going to see more banks pushing that.”