Nigerian bank’s contract staffs rise to 44% of total banking employees

The Nigerian bank’s contract staffs has increased year on year to 44 per cent among the total number of banking employees in the country.

According to the latest data from the National Bureau of Statistics (NBS) revealed that 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.

This tends to show that Nigerian banks are increasingly relying on contract staff to perform daily operations outsourcing for core banking 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. In turn, the bank employees rose to 105, 017, a 0.33% rise compared to the immediate last quarter.

Research by BusinessRemarks revealed that the rising unemployment means the power dynamics between banks and labor has titled towards banks.

Speaking on this, an analyst connotes 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.

Also Read: Access Bank assures customers over digital transactions failure

While not posing any threat to the banking sector, the negative effect lingers on the able bodied youths as well as the economy at large.

“More fresh Nigerian graduates face a bleak future especially those seeking a future in banking. One will need to be exceptionally good to get a non-contract job.

“This will also have negative consequences on youth migration out of Nigerian as well as increase the crime rate in the country.

“In addition, the impact on the economy will be showcased on the tax revenue” he highlighted.