Business
Nigerian banks hiring more contract staff, says report
By Odunewu Segun
Despite the urge in bank staff strength in the last five years, contract staff seems to have taken a large chunk of Bank’s employees despite several picketing by the Nigerian Labour Congress in curbing the trend, National Daily has gathered.
With this trend, fresh Nigerian graduates face a bleak future especially those seeking a future in banking.
In the latest data by the National Bureau of Statistics made available to National Daily, Nigerian banks now have a total of 46, 235 contract staff members as at Q1 2019. This compares to 45,238 in Q4 2018 and 32,013 in the first quarter of 2018.
There has been an upsurge in the bank staff strength in the last five years and it is rising by double digits. Contract staff has risen by 44% year on year as more Nigerian banks increasingly rely on outsourcing for core banking operations.
Total bank employees rose to 105, 017 a 0.33% rise compared to the immediate last quarter. This compares to 17% year on year employee hire for the banking sector. There was a 6.36% uptick in senior staff hires.
Banks are increasingly relying on contract staff to perform daily operations. From a mere 20,237 in 2017 contract staff has more than doubled both as a percentage of total staff and in absolute terms.
According to a financial expert and CEO, AfriSwiss Capital Assets Management Limited, Kalu Aja, it cost banks less to employ casual staff.”
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I don’t think the trend will affect the banking industry…the procedures are being automated so less human input. Also means human capital needs a higher skill base to stay employed. Also, Banks are not violating any laws, the workers don’t work for the bank…..but for the outsourcing company. So, the outsourcing company gives them terms and conditions.”
Another expert, Ugodre Obi-Chukwu, argued that with the increasing aid of computer Programmes and applications, bank jobs over the years have turned very routine and requiring less skill.
“Semi-skilled jobs often attract low wages and banks see this as an area of cost savings. Most banks’ jobs are especially at the operational level and can be performed routinely by employees with minimal soft skills. This has also come at a time where banks are increasingly looking for ways to cut their cost to income ratio targeting overheads such as employee cost.”
The banking sector represents a huge chunk of employees in states across the country. With 44% of staff being contract, tax receipts are expected to be thinner