Mass Sack Looms In The Banking Sector Due To Nose-diving Profits

Declining profits which characterised the nine-month results of a number of banks may have ignited a wave of job cuts in the banking sector, findings by our correspondent have revealed.

Some banks have sacked workers, about six months after the Central Bank of Nigeria introduced a stiffer monetary measure, asking the Deposit Money Banks to keep 50 per cent of public sector deposits with the CBN.

While a number of the DMB have already carried out what industry sources called ‘shedding off excess weight’, it was learnt that more banks might lay off some of their workers in the coming weeks.

At least four banks have sacked some of their workers in the last few weeks. They are Union Bank of Nigeria Plc, Enterprise Bank Limited, Unity Bank Plc, and Keystone Bank Limited.

Sources close to some of the banks, however, claimed the job cuts were part of the banks’ moves to remain competitive and increase shareholders’ value.

Union Bank and Unity Bank had disengaged some of their personnel. Enterprise Bank also reportedly sacked over 150 workers. The bank confirmed the development but declined to mention the number of staff members affected.

Keystone Bank Limited, which laid off some of its workers last week, said the ‘right-sizing exercise’ was ongoing, and that it was in continuation of the bank’s recently instituted performance-based appraisal system.

The Keystone source spoke under condition of anonymity, because he was not authorised to speak on the matter, explaining that the exercise was meant to make the lender efficient.

According to the source, the move was consistent with ongoing workforce rationalisation in the banking sector.

In the coming weeks, more banks are expected to ‘right-size’, in line with the tight monetary stance of the CBN in a bid to rein in on inflation, which it has succeeded in keeping at a single digit in the last six months, according to another source.

GOV. AKPABIO ADVOCATES PROTECTION OF ELECTRONIC PAYMENT PLATFORMS

Governor Godswill Akpabio of Akwa Ibom State has advocated measures to protect electronic payment platforms from the activities of fraudsters.

He made this call in a keynote address delivered at the third annual conference of the Committee of E-Banking Industry Heads held in Uyo, Akwa Ibom.

The theme of the conference was, ‘E-payment System: Harnessing Opportunities for Growth and Profitability,” and it was attended by local and international e-payment experts.

A statement by CeBIH quoted Akpabio, who was represented by the Deputy Governor, Mrs. Valerie Ebe, as noting that the American Federal Bureau of Statistics refers to ‘419’ as the ‘Nigerian crime,’ and profiles it as scam emails emanating mostly from Nigeria.

This profiling, the  governor said, “has greatly affected and dented our image,” and hence, had become an urgent issue of concern to all Nigerians.

“Since these scam artists use electronic payment platforms to defraud their victims, I urge you to think of a way to stop this and salvage our image as a nation. I urge you to do this as a patriotic duty,” the statement further quoted Akpabio as telling the electronic payment experts.

Akpabio said, “The introduction of the cash-less policy in Nigeria is already a treat boom and has eased transactions for our countrymen. The chairman of CeBIH and his team have done a difficult job pretty well. They have ensured that the banking industry in Nigeria adopted best global practices in terms of techniques and reforms. We appreciate and commend them.”

According to the statement, the governor noted that despite the huge advantages offered by e-payment, Nigerians have yet to realise and explore the full benefits of the technological advancement in the banking industry.

Consequently, he tasked the conference, “to explore the best avenues of ensuring that Nigerians take full benefits of numerous opportunities that e-payment system offers to enhance their mode of transactions.”

The Chairman of CeBIH, Mr. Chuks Iku, said the focus of the conference was to look at how the payment systems industry could experience growth in user-base by way of introducing elements like mobile money and agent banking, while remaining profitable in the medium and long terms.

While expressing appreciation to Akwa Ibom State for hosting the conference, Iku said, “We are aware of the great job you are doing in Akwa Ibom State. More importantly, we know that you are one of the biggest champions of the cash-less initiative and the drive to provide financial inclusion to the millions of unbanked Nigerians.

“Akwa Ibom has a digitised library and currently automates its salary payments and carries out successful biometric capture of its citizens. We give you the assurance as a group that we are collectively working to make life easier, convenient and more secure for all Nigerians by implementing various secure electronic payment channels in our different banks, in the interest of the citizens of our great nation, Nigeria.”