CBN intervenes, orders bank to stop retrenchment exercise

The Central Bank of Nigeria (CBN) and the Bankers’ Committee have ordered all banks in the country not to retrench or lay-off any staff of any cadre.

In a statement signed by the CBN’s Director, Corporate Communications, Isaac Okorafor, the apex bank said that its approval must be sought if it becomes absolutely necessary to lay-off any such staff.

Okorafor explained that the decision was taken at a special meeting of the Bankers’ Committee convened on Saturday to further review the implications of the COVID-19 pandemic on the Nigerian banking industry.

The statement said that 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).”

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

The CBN stated that at the end of the meeting, it was decided that the express approval of the Central Bank of Nigeria shall be required in the event that it became absolutely necessary to lay-off any such staff.

He stated, “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 that it 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. CBN solicits the support of all in our collective effort to weather through the economic challenges occasioned by the COVID-19 pandemic.”

It would be recalled that Access Bank had recently laid off some staff, citing economic downturn occasioned by Coronavirus lockdown as reason.