Tag: Banks

The House of Representatives has advanced a bill seeking to regulate employment practices in Nigerian banks, passing its second reading on Thursday. The legislation, sponsored by Fuad Laguda, an APC member representing Surulere I federal constituency in Lagos, aims to amend the Banks and Other Financial Institutions Act 2020 to “prohibit, criminalise and penalise” the hiring of casual or contract staff by banks. Speaking during plenary, Laguda said the bill is intended to address exploitative practices affecting millions of Nigerians employed on casual or contract terms in the banking sector. He noted that current laws, including the Labour Act 2004 and the Employees’ Compensation Act 2010, do not adequately protect these workers’ welfare. Laguda cited a 2023 report by the Chartered Institute of Bankers of Nigeria (CIBN), stating that banks rely on casual and contract workers to cut costs for pensions, minimum wages, health insurance, promotions, bonuses, study grants, and severance packages. He added that such workers constitute roughly 65 percent of the banking workforce. The bill also targets breaches of section 7(1) of the Labour Act 2004, which limits employment without formal recognition to three months. “I urge my colleagues to support this bill because it corresponds with the viewpoints of the governor of the Central Bank of Nigeria, Mr Olayemi Cardoso, who said casual and contract staff in Nigerian banks are exposed to poor working conditions,” Laguda said. He further explained that banks often hire casual and contract employees to avoid legal obligations, leaving them vulnerable to systemic inequalities, emotional abuse, and mental health challenges. Deputy Speaker Benjamin Kalu called for a voice vote, and lawmakers unanimously approved the bill, moving it forward in the legislative process.