E-Financial
Hidden Shame of Contract Workers in Nigerian Banks- Al Jazeera
A report by Al Jazeera has documented the hidden shame of Nigerian banking system where contract staffers in financial institutions live poverty line.
Poverty wages are typical for thousands of contract workers in the banking industry and they can work for years without a raise, promotion, benefits or job security.
According to Al Jazeera, contract staffing has been a feature of Nigeria’s labour market for decades, but it is especially rife in the banking and oil sectors
The report said that for Basit, climbing the corporate ranks of commercial banking in Nigeria has been an exercise in frustration.
The 28-year-old, whose name has been changed to protect his identity, has worked as a teller with Fidelity Bank in Nigeria since 2015.
Six years on, he is at the same branch, working at the same entry-level position, for the same meagre salary of N68,000 ($165) a month.
It is not Basit’s work ethic that is lacking, but the arrangement under which he works.
He is not technically a full-time employee of Fidelity. The entire time he’s worked there, he’s been a contract staffer hired by an employment agency he has never dealt with directly.
Being a contractor means Basit has no upward career path within the bank, or benefits such as insurance, a pension, or a severance package if he’s let go.
If Fidelity’s management is not happy with his services, or they just want to cut expenses, they can let him go when his contract comes up for renewal every two years.
In the meantime, the employment agency siphons off a portion of his pay each month as a “commission”.
Fidelity Bank did not respond to Al Jazeera’s request for comment. But Basit’s story is far from unique.
More than 42 percent of the bank workers in Nigeria were contract staffers as of the third quarter last year, reports the National Bureau of Statistics.
The remainders are full-time employees with banks – roughly a third of who are senior staffers.
Though unionists and government officials say the issues surrounding contract bank workers are being addressed, solutions have been slow to come.
And until they do, there are few employment options for the banking sector’s largely youthful contract workforce to explore.
More than 42 percent of bank workers in Nigeria were contract staffers as of the third quarter last year, reports the National Bureau of Statistics.
Profits before workers
Basit often thinks of quitting his job as a bank teller.
But there are few prospects for him in Africa’s largest economy.
Nigeria’s official unemployment rate rocketed to 33.3 percent in the final three months of last year – the highest on record and among the highest in the world.
Over half of the country’s roughly 70 million-strong labour force was either jobless at the end of last year or not working a full-time job.
That jobs deficit has made it an employer’s market, leaving workers virtually powerless to negotiate – let alone demand – better terms.
In Basit’s case, that means punishing 10-hour days that leave him little time to even explore the few opportunities which may be available to him.
‘’The challenge is that you barely have the time to go search for a job elsewhere,” he told Al Jazeera.
“You leave the house as early as 5 or 6am and you get back by 6pm or so. How do I get back as tired as this and I still start searching for job opportunities when I know that there are only few?’’
Contract staffing has been a feature of Nigeria’s labour market for decades, but it is especially rife in the banking and oil sectors.
Over half of Nigeria’s roughly 70 million-strong labour force was either jobless at the end of last year or not working a full-time job.
For Nigeria’s unionists, the so-called “casualisation” of these workers is the result of financial institutions carving out bigger profits at the expense of labour rights.
“Generally, outsourcing, as far as labour is concerned, is an exploitative system,” said Comrade Sheikh Muhammed, national general secretary for the National Union of Banks Insurance and Financial Institution Employees (NUBIFIE).
Retired bank manager Abolarian Aderemi worked in banking for more than 30 years. He says the plight of contract workers is the result of poor government oversight.
“They are exploiting Nigeria’s poor leadership,” he said. “Labour union has been kicking against it, but nobody listens.”
Muhammed says contract workers face serious hurdles to joining or forming unions where they can collectively bargain for better pay and conditions.
“[Banks] take on casual workers in order also to make sure they confuse the identity and status of the worker so that they will not be able to exercise their right of belonging to anyone,” he told Al Jazeera.
The government has established a committee to review the myriad issues surrounding contract workers in the country’s banking sector. But its efforts were disrupted by the coronavirus pandemic, Nigeria’s Minister of State for Labour and Employment, Festus Keyamo, told Al Jazeera.
“We want to review the whole issue regarding casualisation of workers with the banks and we are also in the process of reviewing all the labour laws now,” he said.
Muhammed said the review should help crack down on labour abuses.
“By the time the review is signed into a working document, no outsourcing will be done [in the banking and insurance sector] without consulting the union and taking cognizance of workers as reflected in the Labour Act,” he said.
A jobs deficit has made it an employer’s market in Nigeria, leaving workers virtually powerless to negotiate – let alone demand – better terms.
Young and exploited
While Nigeria has rules that govern working conditions for full-time staff, the law does not specifically address “triangular employment’’ that covers workers hired through employment agencies.
‘’From the legal perspective, there is nothing illegal about having contract staff; it is a function of contract,” said Waleey Fatai, a Lagos-based labour lawyer.
“From the moral perspective, [it is an issue of] half a loaf is better than none,” he told Al Jazeera.
NUBIFIE’s Muhammed says the problem is not how the current laws are worded, but that employment agencies are falling afoul of it.
“The Labour Act that regulates the relationship did not exempt you because you are a secondary provider of employment,” he said. “It is part of the things we capture in this memorandum of agreement we just worked on.”
But not all contract workers may even be aware of their rights. Many employment agencies look for entry-level candidates in their early 20s with an Ordinary National Diploma (OND), the lowest tertiary degree in Nigeria awarded by polytechnics after a two-year programme.
A higher degree may even work against a job applicant.
Thirty-eight-year-old Ukamaka Olisakwe worked in two banks as a contract staffer between 2008 and 2014 in Nigeria’s east.
She told Al Jazeera the first bank that employed her told her to list her OND on her application but omit her more prestigious Higher National Diploma (HND) – a four-year degree that equates with a bachelor’s degree.
‘’I think they found a loophole in the academic system,” Olisakwe told Al Jazeera.
She said her first bank paid her a meagre base salary of N25,000 a month [$61] plus commission, and assigned to her work in the sales department where she was given performance targets including opening five to six new accounts daily, and generating monthly cash deposits often totalling millions of naira.
“The target heaped on the back of the workers was nasty, unbelievable, [and] mind-bending and if you are unable to meet [the performance targets], you won’t get your commission,’’ she said.
Olisakwe left that job and took a contract position with another bank where she worked in the customer service office alongside full-time, core staff.
‘’It is the same job function that I was doing with the core staff, only that I could not approve account openings,’’ she said.
But her odds of gaining an equal footing with the full-timers were slim.
In order to parlay a contract job into a full-time staff position, workers must take a conversion exam. But few are invited to take the test.
‘’Conversion rarely happens. They will only hand-pick some people,” she said.
Olisakwe finally quit the sector, worried that even if she did manage to convert a contract job into a full-time position, she would eventually fall victim to age discrimination.
“You know polytechnics churn young people every year and when they come for training, the banks retain them to replace the older staff,” she said. “It is cheaper.’’
United Bank for Africa (UBA) has said that its 75th anniversary is a testament to resilience, commitment to excellence.
Oliver Alawuba,
The bank at a world press conference in Lagos peeped into a past that was filled with success stories and promised future enduring milestones of achievements.
Also at the event, the bank hinted that it would this Friday seek shareholders’ approval for its recapitalisation plans, assuring that the bank is poised to meet the deadline as it kicked off its yearlong 75th anniversary activities.
Oliver Alawuba, group managing director, said the bank is set to meet the deadline for the N500 billion new capital base set by the Central Bank of Nigeria (CBN) as the bank continues not only as the leading financial institution in Nigeria but also in the African continent and beyond, considering its presence in 20 African countries and four global financial nerve centres (New York, London, Paris and Dubai).
He noted that the bank would over the next years focus on increasing its presence in the countries where it currently operates, adding that the bank will also focus on supporting small and medium scale enterprises (SMEs).
To the bank, the past 75 years have been marked by stability and excellence, pillars upon which UBA’s legacy stands tall.
The bank was the first bank in Nigeria to offer an initial public offering (IPO) in 1970, the first Nigerian bank to be listed on the Nigerian Stock Exchange (NSE), now Nigerian Exchange Limited (NGX).
It was also the first Nigerian bank in the USA and London to open a branch and the first bank in Nigeria to install Automated Teller Machines (ATMs) and open a campus branch at the University of Lagos in Nigeria.
UBA was the first Nigerian bank to open a subsidiary in Africa (Ghana in 2005), appointed the first female board chairperson in Nigeria and was a pioneer in introducing mobile banking in Nigeria.
It also launched the first multi-lingual chatbot banking in Nigeria called Leo as well as the first Nigerian bank to launch the most successful prepaid cards across Africa.
While honouring past leaders of the bank for their steadfastness, Alawuba appreciated the sacrifices, contributions, support and guidance over the years of Tony Elumelu, current group ghairman,.
He said, “We appreciate and honour you because you built and nurtured the platform on which we are standing today. Our Group Chairman truly deserves special recognition and mention.
“Without his visionary push in 2005 and tutelage over the years, I doubt whether we would be where we are today. For these and more, we say a big and resounding thank you to him”.
He also used the opportunity to thank all customers of UBA around the globe as their consistent support and patronage over the years have been amazing.
He said, “You meet several people, they will tell you that they are third or fourth generation of UBA customers in their families, that their grandparents and parents were customers of UBA and their children currently carry UBA ATM cards, enrolled on our mobile banking and LEO chatbot banking. This is the strength of UBA.
“This milestone is not just a celebration of longevity, but a testament to resilience, innovation, and unwavering commitment to excellence that have defined UBA’s journey over the decades.
“As we reflect on the significance of this epoch-making event, it is important to acknowledge that UBA means different things to different people. For some, UBA is a trusted financial partner; for others, UBA is a beacon of stability and reliability, a development partner in various local communities as well as a catalyst for African development.
“Since its inception in 1949, UBA has evolved from a modest beginning on Lagos Island to a global financial institution with a presence in 20 African countries and 4 global financial nerve centres (New York, London, Paris and Dubai).
“Today we have over 25,000 staff, over 35 million customers served through multiple channels – over 350,000 POS terminals, 2,000 ATM terminals, 1,000 business offices and 19.7 million card customers.
“Amidst economic challenges and market dynamics, UBA has demonstrated remarkable financial strength and resilience. Its splendid performance, especially within the last year, is a testament to the robust fundamentals and sound strategic decisions taken by the bank.
“Going forward”, Alawuba said, “As we navigate through the ever-changing landscape, we remain committed to creating value for our shareholders and capitalising on emerging opportunities in the market.
“Innovation and digital transformation are at the heart of UBA’s strategy for future growth and competitiveness. We will continue to invest in innovative products, services, and digital platforms that enhance customer experience and drive operational efficiency. Our commitment to corporate social responsibility is strong, with initiatives focused on education, healthcare, entrepreneurship, and environmental sustainability; thus, making a concrete impact on communities across Africa”
Looking ahead, Alawuba said, “Our vision is clear and it is to be the role model for African businesses. UBA is one bank, uniting Africa while connecting Africans to the world and the world to Africa. Our primary focus is to be the payment bank for capital flows, trade and investments between Africa and the rest of the world.
“We are committed to expanding our presence, seizing growth opportunities, and delivering value to all stakeholders. Collaboration and partnerships as exemplified by the $6bn SME funding agreement signed with the African Free Trade Area (AfCFTA) will be instrumental in achieving our strategic objectives. We are dedicated to deepening relationships with customers, employees, regulators, and other stakeholders for mutual benefit and long-term success”.
Responding to a question from the media over concerns that the bank’s share price is considered undervalued despite its recent surge, Alawuba said United Bank for Africa’s share price could hit the N100 per share mark.
President Bola Ahmed Tinubu whose administration will be a year old in a few days has got a total of $4.1 billion loan
Bola Ahmed Tinubu
Available data showed that the federal government first took $1.95bn loan from World Bank.
The loans were $700m for education, $750m for power and $500m for women empowerment.
Also the at close of Nigeria’s activities at the World Bank/International Monetary Fund Spring meeting in Washington DC, the United States, this year, Wale Edun, minister of Finance and Coordinating Minister of the Economy, announced that the administration is expecting a fresh $2.2bn single-digit interest loan from the World Bank. This brings the total loan so far to $4.1Bn
Edun, said another budget support facility is expected to be disbursed by the African Development Bank (AfDB).
“We have qualified for the processing just this week to the Board of Directors of the World Bank of a total package of $2.25bn of what you can call ‘the closest you can get to a free lunch’; virtually a grant. It’s for about 10 to 20 years moratorium and about one per cent interest,” Edun said, adding “In addition, there is a similar budgetary support – low-interest funding – from the African Development Bank (AfDB).”
Recall that, on August 9, 2023, Tinubu inaugurated a tax committee with mandate to raise revenue because his government inherited a ‘bad government’ and he will not continue with the “circle of debt”.
Days later, Edun, also emphasised the President’s position on loans at the Federal Executive Council (FEC) meeting held on August 28, 2023.
He said, “The federal government is not in a position to borrow at this time. Rather, the emphasis has to be on creating a stable, macroeconomic environment, stable inflation, stable exchange rate, an environment within which people can come and invest and thereby increase production and further grow the economy.
“So that is the plan. That is the expectation and it is that there will not be a reliance on borrowing.”
As part of its Corporate Social Responsibility (CSR) initiatives, leading financial institution, Fidelity Bank Plc, has renovated the Primary Healthcare Clinic along the Workers Village in the Tudun Amba Community of Lafia Local Government Area of Nasarawa State.
The bank also provided water facilities to ameliorate issues of water scarcity being experienced in the community in recent times.
Speaking at the inauguration ceremony, the Divisional Head, Brand and Communication Plc, Fidelity Bank, Meksley Nwagboh, said the dignity of every human person is a shared responsibility. The bank decided to embark on the project as a means of improving the living condition of people in the community and as part of the bank’s social responsibility to its host community.
Expressing gratitude to the leadership of the community for giving the bank the opportunity to execute the project, Nwagboh said, “What we are doing today is not different from what we have been doing in communities, local governments and states across the country over the years. As a socially responsible organisation, we take it upon ourselves to impact our host communities positively through developmental initiatives such as these.
“On behalf of the management and staff of Fidelity Bank, I want to say thank you to everyone who made it possible for us to touch the lives of the people positively in this community and we remain committed to playing our part in helping individuals grow, thrive and prosper”.
On his part, the Honourable Commissioner of Health, Nasarawa State, Gaza Gwamna, while commending Fidelity Bank for the donation of a water facility and the renovation works at the Primary Healthcare Clinic, reiterated the state government’s commitment to continue to support commercial banks to boost the economy of the state.
The Commissioner who was represented by the Permanent Secretary of the ministry, John Damina, further called on the Nasarawa State Primary Healthcare Development Agency to utilise the upgraded facility with care to encourage the bank and other private investors to continue to support the less-privileged people of the state.
“I want to use this opportunity to call on the management of the NAPHDA to ensure proper utilization of this facility for the good of the host community and beyond. This will go a long way in encouraging other private sector players to extend the same gesture to other communities in the state,” he said.
Ranked as one of the best banks in Nigeria, Fidelity Bank is a full-fledged customer commercial bank with over 8.5 million customers serviced across its 251 business offices in Nigeria and the United Kingdom as well as on digital banking channels.
The bank has won multiple local and international awards including the Export Finance Bank of the Year at the 2023 BusinessDay Banks and Other Financial Institutions (BAFI) Awards, the Best Payment Solution Provider Nigeria 2023 and Best SME Bank Nigeria 2022 by the Global Banking and Finance Awards; Best Bank for SMEs in Nigeria by the Euromoney Awards for Excellence 2023; and Best Domestic Private Bank in Nigeria by the Euromoney Global Private Banking Awards 2023.
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