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Wednesday, June 29, 2022

Banks Shed Almost 10,000 Jobs in One Year, Led by Contract Staff

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Nigerian banks effected 9,866 job cuts in the past year as the outlook for the economy weakened and automation gained steam.

Non full time staff bore the brunt of the job losses with contract staff strength 15.8 percent lower in the second quarter (Q2) of 2020, compared to the same period a year ago, MoneyCentral’s analysis of the National Bureau of Statistics (NBS) latest banking sector report shows.

Nigerian lenders are facing a tighter regulatory environment, lower interest rates and much weaker economy that have eaten into their profits over the year.

While banks shed contract staff to the tune of 7,321 employees, executive staff strength rose 14.6 percent year on year to 204, in Q2, 2020, compared to the Q2, 2019 period.

Headcount for all other cadre of employees in the sector shrank, including for Senior staff down -1.81 percent in a year and Junior staff down 5.62 percent.

Nigerian Banks shed jobs even as the financial services sector GDP expanded by +28.4 percent (YoY) in the second quarter of 2020, a signal that lenders are looking to rein in costs and expand the use of technology to serve workers in place of brick and mortar branches that are often major cost centers.

Total staff strength in the banking sector stood at 94,498 in Q2, 2020 down 9.45 percent from the Q2, 2019 level of 104,364 according to the NBS data.

Some banks shed staff faster than the average rate for the period however. Access Bank staff strength fell by 10.25 percent to 6,617 in June 2020, from 7,373 in June 2019, data from its latest financials show.

The bank which is one of Nigeria’s biggest by assets had said it planned to cut salaries to avoid job losses as a result of the lockdown to contain the coronavirus.

The bottom-line for job seekers in the banking sector is that contract staff with low end skills like tellers are being disposed of while people with more advanced skills for middle management roles are in slight demand.

 

 

 

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