FirstBank, GTBank reduce operating hours over rising cost of doing business

With the rising cost of doing business in the country becoming unbearable, most businesses in the country, especially in the banking industry have started finding ways to cut costs.

The cost of energy, especially diesel, whose price has gone up in recent weeks because of the Russian –Ukraine war has eaten deep into the operations of most deposit money banks and consequently, the industry is now strategizing for survival means, with the low hanging fruits, being cutting costs.

For instance, First Bank and GTBank have taken the lead in reducing the hours of operations.

In a statement made available on its official website Sunday, April 10, Firstbank said it has revised operating opening and closing hours effective today, Monday, April, 11.

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Although, the bank did not adduce any reason for the action, it was gathered that the rising cost of diesel and difficult operating environments are part of the reasons.

According to the bank: “We have revised our banking hours across all our locations. The revised opening and closing hours will be effective from Monday, 11 April 2022.”

The bank said that while some of its branches will maintain the status quo, other branches will function between the hours of 8:00 am and 3:00 pm.., 8:00 am and 2:00 pm, 8:00 am and 1:00 pm and 10:00 am and 3:00 pm accordingly.

Similarly, Guaranty Trust Bank has reduced its operating closing hours from 5:00 p.m. to 4:00 p.m. over alleged incessant increase in diesel pump price. Last month, through flyers, the bank disclosed that the new development will take effect from Monday, March 21.

The bank stated in a flyer announcement: We’ll like to inform you that our branches will now be open from 8:00 am to 4:00 p.m., Monday to Friday effective Monday, 21 March 2022. The bank advised customers to consider its digital banking options for any transactions beyond its new operating hours.

It was further gathered that other deposit money banks are strategizing on how to cushion the effects of the harsh operating environment.

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The strategies range from rationalization, reduction in pay to closing down some branches regarded as ‘loss centers,’ as well as banning or outsourcing the operations of dispatch riders, for those that have not done so.

These developments are coming in the wake of the incessant national grid collapses that have left the country in darkness, forcing organizations to heavily rely on diesel for their operations.

In March, the pump price of diesel hit a record high of N800 per litre, with the new price showing a significant increase from N225 per litre sold in January 2021.

Mostly used by large and medium-sized businesses to run their daily operations, the price of diesel, which is largely unregulated, has surged by over 113 percent in the last 14 months.