CBN, Bankers’ c’ttee shelve workers lay-off
.As expert projects CRR reduction at next MPC meeting
Following the impact of COVID-19 pandemic on Nigeria’s banking industry, the Central Bank of Nigeria (CBN) and the Bankers’ Committee have agreed to shelve the planned sack of workers.
Some commercial banks operating in the country had proposed to the idea of laying-off certain percentage of their workforce as banking operations begins today.
But the apex bank on Sunday in a statement by its Director, Corporate Communications, Isaac Okorafor, said the decision to suspend possible staff sack in the banking industry was taken at a 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.
He said the Committee particularly deliberated on the issue of the operating costs of banks in view of the disruptions emanating from the global economic difficulties.
It then decided to: “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.”
Commenting on this development, Prof. Uche Uwaleke, Professor of Capital Markets and renowned economist said “the decision to stop Banks from laying off staff is a welcome development in order not to create economic hardships for the families of workers in that sector considering that government’s COVID-19 mitigation measures are geared towards protecting jobs.
He said: “In any case, the agreement was reached with the Bankers Committee. So, I expect that the CBN and the CEOs of banks must have worked out ways to cushion the rising costs of bank operations and liquidity challenges occasioned by the pandemic.
“In addition to the forbearance package already extended to Deposit Money Banks (DMBs) by the apex Bank, I want to bet that the CBN’s Monetary Policy Committee will reduce the Cash Reserve Ratio (CRR) from the current 27.5 per cent when the members meet later this month.”
It would be recalled that Access Bank Plc had last week told its employee that they are to take a pay cut as the coronavirus bites hard on economic activity in the country.
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Access which presently has a workforce of about 5,870 permanent staff after it took over Diamond Bank in April last year had assured staff that it would not reduce its workforce.
“The pay cut will ensure that there are no job losses”.
Herbert Wigwe, the bank’s CEO in a virtual talk with staff, said the adjustments are needed at this time and that he would take a pay cut of about 40 per cent. The pay cut is expected to begin with May salaries if economic conditions remain the same.
Herbert Wigwe, had held a meeting, tagged Employee Town Hall Meeting, with some staff of the bank via Microsoft’s Teams (video) and informed them of some strategic moves that the financial institution would take this month to ensure it weathered the ravaging effects of the present COVID-19 crisis ravaging the world economy.
According to him, the decision would affect the bank’s 5,870 permanent staff starting with him, as his salary would be cut by 40 per cent.
Sources within the bank said that he had initially held a session with the staff, engaging them on what decisions needed to be made regarding salaries, especially considering the effects of COVID-19 on the economy.
He gave staff the options of either downsizing or accepting cut salaries. Majority of the staff present at the online video meeting on Microsoft Teams chose the lesser evil of cutting salaries.
After this, he had another meeting with staff via the same Teams where he finally announced that there will be salary cuts.
Several tops companies in Nigeria and globally are either sacking, furloughing staff or slashing salaries to keep costs down as the coronavirus pandemic disrupts global trade and commerce.
