Amidst talks of laying off of workers in the banking industry, the Central Bank of Nigeria (CBN) and the Bankers Committee which comprise of chief executive of banks have placed a hold on retrenchment of staff irrespective of their status or cadre.
This order is coming on the heels of a planned by Access Bank to implement a reduced pay-structure, affecting all employees, including its Group managing director, Herbert Wigwe.
Access Bank said in a statement that the reduction is to reduce the Bank’s operating expense as it navigates through the uncertainties surrounding the global pandemic.
Deducing from the announcement, Wigwe will be taking a 40 percent reduction in annual income.
Speaking on the decision made by the bank, Wigwe said: “We are today, as an institution faced with the current economic crisis resulting from the pandemic, we have taken certain measures to control costs across the institution at all levels, to achieve greater efficiency and continue to run a profitable business post COVID-19.”
He noted that the Bank, with a strength of over 30,000 employees, is not oblivious of the difficult times but is determined to ensure that it’s staff remain in employment.
“To keep to this commitment, we have made a decision at management level to restructure salaries. This will start with me, who will have a salary restructure of 40 percent while other employees will have their salaries slightly reduced as well. It has become essential to take this decision in the interim, considering economic realities and hope to reverse it as soon as economic activities become stable,” Wigwe said.
He assured the bank’s customers of smooth customer service experience to enable them to transact seamlessly amidst the COVID-19 pandemic, while it continues to apply sustainable business practices to ensure that it delivers value to stakeholders even after the Coronavirus pandemic.
According to the statement, Wigwe, in a podcast to employees, explained: “As part of the Bank’s commitment to protecting the lives of our staff, we adhered to all directives from government agencies and global health organisations, and reduced our capacity to operate profitably.
“For an institution like ours, it is important for us to rationalise our cost structure, service provider structure and salary structure, all in a bid to drive greater efficiency to weather the storm ahead.”
Meanwhile the CBN in a statement signed by its director, Corporate Communications, Mr Isaac Okorafor said the CBN, Bankers’ Committee both decided to suspend lay-offs in banks.
The statement said, “In order to help minimise 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).”
This decision the CBN said was taken “following 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.”
The Committee, the CBN noted “deliberated on the issue of the operating costs of banks in view of the disruptions emanating from the global economic difficulties.”
At the end of the deliberations, it was also decided that “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.”