General News
Recapitalisation: Silent Layoffs, Infrastructure Deficit Threat to $1trn Economy
By Blaise Udunze
The Central Bank of Nigeria’s recapitalisation exercise, which is scheduled for a March 31, 2026, deadline, has continued to reignite optimism across financial markets and is designed to build stronger, more resilient banks capable of financing a $1 trillion economy. With the ongoing exercise, the industry has been witnessing bank valuations rising, investors are enthusiastic, and balance sheets are swelling. However, beneath these encouraging headline numbers, unbeknownst to many, or perhaps some troubling aspects that the industry players have chosen not to talk about, are the human cost of consolidation and the infrastructure deficit.
CBN
Recapitalisation often leads to mergers and acquisitions. Mergers, in turn, almost always lead to job rationalisation. In Nigeria’s case, this process is unfolding against an already fragile labour structure in the banking industry, one where casualisation has become the dominant employment model.
One alarming fact in the Nigerian banking sector is the age-old workforce structure raised by the Association of Senior Staff of Banks, Insurance and Financial Institutions (ASSBIFI), which says that an estimated 60 percent of operational bank workers today are contract staff. This reality raises profound questions about the sustainability of Nigeria’s banking reforms and the credibility of its economic ambitions.
A $1 trillion economy cannot be built on insecure labour, shrinking institutional knowledge, and an overstretched financial workforce.
Recapitalisation and the Hidden Merger Trap
History is instructive. Referencing Nigeria’s 2004-2005 banking consolidation exercise, which reduced the number of banks from 89 to 25, and no doubt, it produced larger institutions, while it also triggered widespread job losses, branch closures, and a wave of outsourcing that permanently altered employment relations in the sector. The current recapitalisation push risks repeating that cycle, only this time within a far more complex economic environment marked by inflation, currency volatility, and rising unemployment.
Mergers promise efficiency, but efficiency often comes at the expense of people. Speaking of this, duplicate roles are eliminated, technology replaces frontline staff, and non-core functions are outsourced. The troubling part of it is that this is already a system reliant on contract labour; mergers could accelerate workforce instability, turning banks into balance-sheet-heavy institutions with shallow human capital depth.
ASSBIFI’s warning is therefore not a labour agitation; it is a macroeconomic red flag.
Casualisation as Structural Weakness, Not a Cost Strategy
It has been postulated by proponents of job casualisation that it is a cost-control mechanism necessary for competitiveness. Contrary to this argument, evidence increasingly shows that it is a false economy. In reaction to this, ASSBIFI President Olusoji Oluwole, who kicked against this structural weakness, asserted that excessive reliance on contract workers undermines job security, suppresses wages, limits access to benefits and blocks career progression while affirming that over time, this erodes morale, loyalty, and productivity.
More troubling are the systemic risks. Casualisation creates operational vulnerabilities, higher fraud exposure, weaker compliance culture, and lower institutional memory.
One of the banking regulators, the Nigeria Deposit Insurance Corporation (NDIC), has not desisted from repeatedly cautioning that excessive outsourcing and short-term staffing models increase security risks within banks. On the negative implications, when employees feel disposable, ethical commitment weakens, and reputational risk grows.
Banking is not a factory floor. It is a trust business. And trust does not thrive in insecurity.
Inside Outsourcing Web of Conflict of Interest
Beyond cost efficiency, Nigeria’s casualisation crisis is also fuelled by a deeper governance problem, conflicts of interest embedded within the outsourcing ecosystem.
In many cases, bank chief executives and executive directors are reported to own, control, or have beneficial interests in outsourcing companies that provide services to their own banks. Invariably, it is the same firms supplying contract staff, cleaners, security personnel, call-centre agents, and even IT support. Structurally, this arrangement allows senior executives to profit directly from the same outsourcing model that strips workers of job security and benefits.
The incentive is clear. Outsourcing enables banks to maintain lean payrolls, bypass strict labour protections associated with permanent employment, and reduce long-term obligations such as pensions and healthcare. But when those designing outsourcing strategies are also financially benefiting from them, the line between efficiency and exploitation disappears.
This model entrenches casualisation not as a temporary adjustment tool, but as a permanent business strategy, one that externalises social costs while internalising private gains.
Exploitation and Its Systemic Consequences
The human impact is severe because the contract staff employed through executive-linked outsourcing firms often face poor working conditions, low wages, limited or no health insurance, and zero job security, which is demotivating. Many perform the same functions as permanent staff but without benefits, voice, or career prospects.
ASSBIFI has warned that prolonged exposure to such insecurity leads to psychological stress, declining morale, and reduced productive life years. Studies on Nigeria’s banking sector confirm that casualisation weakens employee commitment and heightens anxiety, conditions that directly undermine service quality and operational integrity.
From a systemic standpoint, exploitation feeds fragility. High staff turnover erodes institutional memory. Disengaged workers weaken internal controls. Meanwhile, this should be a sector where trust, confidentiality, and compliance are paramount; this is a dangerous trade-off if it must be acknowledged for what it is.
Why Workforce Numbers Tell a Deeper Story
It is in record that as of 2025, Nigeria’s banking sector employs an estimated 90,500 workers, up from roughly 80,000 in 2021. The top five banks today, such as Zenith, Access Holdings, UBA, GTCO, and Stanbic IBTC, account for about 39,900 employees, reflecting moderate growth driven by digital expansion and regional operations.
At face value, truly, these figures suggest resilience. But when viewed alongside the 60 percent casualisation rate, they paint a different picture, revealing that employment growth is without employment quality. A workforce dominated by contract staff lacks the stability required to support long-term credit expansion, infrastructure financing, and industrial transformation.
This matters because banks are expected to be the engine room of Nigeria’s $1 trillion economy, funding roads, power plants, refineries, manufacturing hubs, and digital infrastructure. Weak labour foundations will eventually translate into weak execution capacity.
Nigeria’s Infrastructure Financing Contradiction
Nigeria’s infrastructure deficit is estimated in the hundreds of billions of dollars. Power, transport, housing, and broadband require long-term financing structures, sophisticated risk management, and deep sectoral expertise. Yet recapitalisation-induced mergers often lead to talent loss in precisely these areas.
As banks consolidate, specialist teams are downsized, project finance units are merged, and experienced professionals exit the system, either voluntarily or through redundancy. Casual staff, by design, are rarely trained for complex, long-term infrastructure deals. The result is a contradiction, revealing that larger banks have bigger capital bases but thinner technical capacity.
Without deliberate workforce protection and skills development, recapitalisation may produce banks that are too big to fail, but too hollow to build.
South Africa Offers a Useful Contrast
South Africa offers a revealing counterpoint. As of 2025, the country’s “big five” banks, such as Standard Bank, FNB, ABSA, Nedbank, and Capitec, employ approximately 136,600 workers within South Africa and about 184,000 globally. This is significantly higher than Nigeria’s banking workforce, despite South Africa having a smaller population.
More importantly, South African banks maintain a far higher proportion of permanent staff. While outsourcing exists, core banking operations remain firmly institutionalized compared to the Nigerian banking system. For this reason, South Africa’s career progression pathways are clearer, labour regulations are more robustly enforced, and unions play a more structured role in workforce negotiations.
The result is evident in outcomes. South Africa’s top six banks are collectively valued at over $70 billion, with Standard Bank alone boasting a market capitalisation of approximately $30 billion and total assets nearing $192 billion. Nigeria’s top 10 banks, by contrast, held combined assets of about $142 billion as of early 2025, even with a much larger population and economy, and its 13 listed banks reached a combined market capitalisation of about N17 trillion ($11.76 billion at an exchange rate of N1,445) in 2026.
Though this gap is not just about capital. It is about institutional depth, workforce stability, and governance maturity.
Bigger Valuations, But a Weaker Foundations?
Nigeria’s 13 listed banks reached a combined market capitalisation of about N17 trillion in 2026. It is no surprise, as it is buoyed by investor anticipation of recapitalisation and higher capital thresholds. Yet market value does not automatically translate into economic impact. Without parallel investment in people, systems, and long-term skills, valuation gains remain fragile.
South Africa’s experience shows that strong banks are built not only on capital adequacy, but on human capital adequacy. Skilled, secure workers are better risk managers, better innovators, and better custodians of public trust.
Labour Law and its Regulatory Blind Spots
ASSBIFI’s call for a review of Nigeria’s Labour Act is timely, and this is because the current framework lags modern employment realities, particularly in sectors like banking, where technology and outsourcing have blurred traditional employment lines. Regulatory silence has effectively legitimised casualisation as a default model rather than an exception.
The Central Bank of Nigeria cannot afford to treat workforce issues as outside its mandate. Prudential stability is inseparable from labour stability. Regulators must begin to view excessive casualisation as a risk factor, just like liquidity mismatches or weak capital quality.
Recapitalisation Without Inclusion Is Incomplete
If recapitalisation is to succeed, it must be inclusive; therefore, the industry must witness the enforcement of career path frameworks for contract staff, limiting the proportion of outsourced core banking roles, and aligning capital reforms with employment protection. It also means recognising that labour insecurity ultimately feeds systemic fragility.
South Africa’s banking sector did not avoid consolidation, but it managed it alongside workforce safeguards and institutional continuity. Nigeria must do the same or risk building banks that look strong on paper but crack under economic pressure.
True Measure of Reform
Judging by the past reform in 2004-2005, it has shown that Nigeria’s banking recapitalisation will be judged not by the size of balance sheets, but by the resilience of the institutions it produces. As part of the recapitalisation target for more resilient banks capable of financing a $1 trillion economy, it demands banks that can think long-term, absorb shocks, finance infrastructure, and uphold trust. None of these goals is compatible with a workforce trapped in perpetual insecurity.
Casualisation is no longer a labour issue; it is a national economic risk. If mergers proceed without deliberate workforce stabilisation, Nigeria may end up with fewer banks, fewer jobs, weaker institutions, and a slower path to prosperity.
The lesson from South Africa is clear, as it shows that strong banks are built by strong people. Until Nigeria’s banking reforms fully embrace that truth and the missing pieces are addressed, recapitalisation will remain an unfinished project. and the $1 trillion economy, an elusive promise.
Blaise, a journalist and PR professional, writes from Lagos, can be reached via: [email protected]
NLNG and the Nigerian Content Development and Monitoring Board (NCDMB) have commenced the construction of a research and innovation centre at Rivers State University, aimed at strengthening indigenous capacity in computer and electrical engineering.
The NLNG Research and Innovation Centre for Computer and Electrical Engineering (RICCEE), which was inaugurated yesterday, is the company’s largest Human Capital Development Institutional Strengthening project to date.
The centre is expected to provide specialised training, advanced research facilities and technological solutions for challenges in Nigeria’s energy and industrial sectors.
It will also house a professorial chair and operate as a research and development centre where industry-focused solutions, particularly for NLNG, can be developed and potentially commercialised.
Speaking at the groundbreaking ceremony, NLNG’s Managing Director and Chief Executive Officer, Adeleye Falade, described the project as a strategic investment in the country’s future and evidence of the company’s commitment to sustainable human capital development.
Falade, who was represented by NLNG’s General Manager, External Relations and Sustainable Development, Sophia Horsfall, said the facility would improve the university’s ability to produce highly skilled professionals while ensuring that research responds to industry needs.
He said the centre would also help bridge the gap between academic knowledge and practical industry requirements by creating opportunities for researchers and professionals to work together on innovations with commercial and developmental value.
Felix Omatsola Ogbe, the Executive Secretary of NCDMB, represented by the Director, Capacity Building, Abayomi Bamidele, said the project marked an important step in advancing the Board’s Human Capital Development objectives.
According to him, the centre is part of the Board’s Institutional Strengthening Programme, which seeks to build lasting partnerships with higher institutions through infrastructure that supports teaching, research, innovation and practical skills development.
Ogbe challenged the centre to emerge as a hub for discovery, creativity and technological advancement, where students can develop innovative ideas, researchers tackle real-world problems and industry can find reliable research and development partners.
The Vice-Chancellor of Rivers State University, Prof. Isaac Zeb-Obipi, said the project aligned with the institution’s 2026–2030 strategic plan, particularly its focus on research collaboration, innovation and entrepreneurship.
“We envisage the Centre as a world-class hub where researchers and students can develop practical solutions to engineering and technological challenges, where university-industry collaboration can flourish, and where innovative ideas can be transformed into useful products, technologies and services,” he said.
The centre will occupy about 9,336 square metres within the university and include specialised laboratories for electronics and signal processing, robotics and embedded systems, software engineering, and digital forensics and cybersecurity.
The facility will also feature solar energy provisions, energy-efficient lighting and other environmentally responsible systems designed to reduce operating costs and support reliable research activities.
RICCEE is one of NCDMB’s Institutional Strengthening Projects designed to improve learning institutions through modern infrastructure, research facilities, technical equipment and training aligned with industry needs.
General News
NITDA Seals Strategic Deals with Goose FL and Fireflies AI to Power $1 Trillion Digital Economy Vision
In a significant step toward expanding Nigeria’s tech footprint on the global stage, the National Information Technology Development Agency (NITDA) has signed strategic Memoranda of Understanding (MoUs) with Canadian tech companies Goose FL and Fireflies AI.
The signings took place during the Nigeria–Canada Investment Forum and the Nigeria Investment Economic Conference in Toronto, Canada, witnessed by NITDA’s Director-General, Kashifu Inuwa Abdullahi.
The strategic partnership centers on three core pillars designed to accelerate the nation’s digital roadmap:
- Expanding Financial Inclusion: Developing innovative technology solutions to broaden access to digital financial services and create sustainable economic opportunities for underserved communities.
- Deploying Local AI Infrastructure: Establishing indigenous Artificial Intelligence infrastructure and services to strengthen Nigeria’s internal capacity to build, manage, and benefit from AI technologies locally.
- Building a Stronger Digital Economy: Driving long-term economic growth through strategic global partnerships, technology transfer, innovation, and digital capacity development.
This international collaboration directly aligns with President Bola Ahmed Tinubu’s vision to grow Nigeria into a $1 trillion economy by 2030, anchored by innovation, digital technology, and human capital development.
By forging key global ties, NITDA continues to position Nigeria as a rising leader in the digital economy, ensuring that emerging tools like AI deliver real, tangible value for local citizens and businesses.
Anambra State Government says it is exploring partnerships with the Federal Government and other stakeholders to extend digital connectivity to underserved rural communities across the state.
The Managing Director and Chief Executive Officer of the Anambra State ICT Agency, Mr Chukwuemeka Fred Agbata, disclosed this during a virtual media engagement with journalists on Thursday.
Agbata said rural connectivity remained a major challenge because telecommunications operators were often reluctant to invest heavily in communities where network deployment might not be commercially viable.
He said the state was willing to explore opportunities to leverage Federal Government infrastructure and the Universal Service Provision Fund (USPF) to extend connectivity to underserved communities.
“We understand what digital inclusion means because we are dealing directly with these communities,” Agbata said.
According to him, the objective is to ensure that rural residents are not excluded from the benefits of digital government and the wider digital economy simply because of where they live.
Agbata said the effort formed part of the state’s broader digital transformation agenda, which is targeting deeper digitalisation of government services and a more digitally enabled business environment by 2030.
He said the second phase of the agency’s digital transformation agenda would focus on e-governance, digital infrastructure, smart government and the use of emerging technologies to drive development.
“My core vision is that we would have digitised every single government entity in Anambra State,” he said.
The ICT boss said the digital transformation agenda would extend beyond government ministries, departments and agencies (MDAs) to businesses and residents across the state.
He said the agency was already developing websites for government MDAs and transforming them from mere information platforms into channels for delivering government services.
“We are building websites for all the MDAs. We are also automating them to be able to carry out services and give government support and government services through their websites,” he said.
Agbata said the initiative would reduce the need for citizens to physically visit government offices to access basic services.
He said the Smart Anambra platform had already demonstrated growing demand for remote access to government services.
According to him, the platform recorded about 14,000 visits between July 9 and July 29, averaging approximately 700 visits daily, despite limited publicity.
He said the data indicated that residents were interested in accessing government services online, including applications, permits and identification-related processes.
“What the data is already showing us is that we really need to build a system that allows people to actually get government services remotely,” Agbata said.
He explained that the objective was to allow residents to initiate processes online, complete forms remotely and only visit government offices where physical presence was eventually required.
This, he said, would reduce the time and cost citizens spend travelling to Awka or other government offices to access services.
Agbata said services in areas including hospitals, schools and other government processes were being connected to Smart Anambra.
Anambra Targets 2030 for Digital Government
Agbata said the state’s 2030 target was to deepen the digitalisation of government services and create an environment where businesses could increasingly operate within the formal digital economy.
He said the agency was working with the Ministry of Commerce to promote the formalisation of businesses, particularly SMEs and businesses operating in major markets.
“One of the biggest challenges that we have is that SMEs are not formalised enough,” he said, adding that the agency was exploring partnerships to address the challenge.
The ICT agency boss said the transformation would be gradual because major government initiatives required the necessary approvals and resources.
On the possibility of making Anambra completely paperless, Agbata disclosed that the State Executive Council was already operating a paperless system.
He, however, said the entire civil service might continue to operate a combination of digital and paper-based processes for some time because of the complexity of government operations.
“What might happen is a dual situation,” he said, adding that selected MDAs could be used as pilots for deeper digital transformation.
Agbata also disclosed that the Anambra State ICT Agency had commenced the deployment of a locally trained artificial intelligence (AI) system to automate its operations and explore applications in governance, revenue management and public-sector productivity.
He explained that the agency did not develop a frontier large language model from scratch because of the huge computing and financial resources required.
Instead, he said, it adopted an open-source model, modified it and was training it for specific local use cases.
“We have started doing our own local AI system. It is an open-source system, so we didn’t build our own frontier model. We basically looked at open source and modified it, and we are training it,” Agbata said.
He said the system had already been deployed to automate the agency’s operations end-to-end.
“We have used it to automate our agency end-to-end. Everything that we do now is currently automated,” he said.
Agbata said the agency was exploring how the model could be applied across other areas of government to improve productivity, address revenue leakages and strengthen governance.
He said the AI initiative formed a major part of what he described as the agency’s “2.0” phase following his reappointment by Gov. Chukwuma Soludo.
According to him, the second phase would build on achievements in infrastructure, capacity development, e-governance and smart government while placing greater emphasis on AI and emerging technologies.
Agbata also said the state’s free public Wi-Fi initiative remained operational, stressing that the programme was introduced before the electioneering period.
“The free Wi-Fi didn’t start as a political thing, a campaign thing. It started way before the campaigns,” he said.
He explained that the strategy was adjusted during the campaigns to enable residents to follow the governor’s activities and participate in live engagements while on the move.
According to him, existing Wi-Fi locations, including facilities at the state Secretariat, remain operational, although occasional downtime occurs, particularly during periods of adverse weather.
“There are downtimes now and then because with the rains and all of that, these things have their uptime and their downtimes, but it is still very much available,” he said.
He disclosed that there were currently no plans to establish additional Wi-Fi locations, noting that existing sites were still providing services.
Agbata said the state would continue to develop digital skills and education programmes, including Smart Schools and other capacity-development initiatives.
He also called for stronger collaboration among government, technology companies, telecommunications operators, local technology manufacturers and other stakeholders to accelerate the state’s digital transformation.
He cited the procurement of about 2,000 computers supplied by indigenous technology company, Zinox, as an example of the state’s engagement with local technology providers.
Agbata said the agency would remain open to partnerships capable of supporting Anambra’s technology agenda.
He said the ultimate objective was to build an Anambra where residents and businesses could increasingly interact with government digitally, while technology becomes a central driver of economic development across the state.
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