Banks to Seek CBN’s Approval Before Workers’ Lay Off, Halts Sack Plan

Bukola Olanrewaju May 4, 2020 Banking and Finance, BUSINESS Leave a comment

The Central Bank of Nigeria(CBN) has mandated all Nigerian bank to get its approval before laying off any staffs and as result order banks not to lay off staff amidst the coronavirus pandemic.

The apex bank said in a statement made available to Business Remarks, Sunday evening that the decision was taken after a special meeting of the Bankers’ Committee.

This is coming after speculations about the impending sack of workers in the banking sector and harsh criticism tailing the bank’s decision, Access Bank Plc being the first to announce its plan to downsize, or in the alternative slash its workers’ salaries.

READ ALSO: Zenith Bank’s Gross Earning Surges by 6% to N166.8 Billion in Q1 2020

Also Read:

Apparently to forestall a major crisis in the country, even as the country’s economy is struggling to find its footing as the economic impact of the coronavirus bites harder, the CBN, through its Bankers’ Committee, on Sunday, ordered the immediate suspension of such plans.

The CBN spokesperson, Isaac Okoroafor, who signed the statement, said the order was given at the end of a special meeting of the Bankers’ Committee held on May 2 to further review the implications of the COVID-19 pandemic on the Nigerian banking industry.

The statement titled: “CBN, Bankers’ Committee Suspend Lay offs in Banks”, reads:

“A special meeting of the Bankers’ Committee was convened on May 2, 2020, to further review the implications of the COVID-19 pandemic on the Nigerian banking industry. 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 as follows:

“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).

“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.

“The Central Bank of Nigeria solicits the support of all in our collective effort to weather through the economic challenges occasioned by the COVID-19 pandemic.”