Nigeria: CBN Makes It Mandatory For Commercial Banks To Get Approval Before Laying Off Workers

The Central Bank of Nigeria (CBN) has made it mandatory for Commercial banks in the Country to get approval before laying off workers in the banking sector as a result of the pandemic.

This was contained in a statement on Sunday by the apex bank’s Director, Corporate Communications, Isaac Okorafor.

The  Presidential Task Force Team on COVID-19 had said last week that banks would be allowed to re-open for commercial operations as the lockdown eases in parts of the country effective Monday, May 4.

Some banks had proposed the idea of downsizing their workforce as they plan to recommence operations, a decision that has met public outcry.

But in a review of the economic impact the proposed layoff would have on workers and their families, especially at such a difficult time, the apex bank came to the conclusion that no banks should lay-off workers without getting approval from them.

It said, “A special meeting of the Bankers’ Committee was convened on May 2, 2020, to further review the implications of the COVID-19 pandemic on the Nigerian banking industry. The Committee particularly deliberated on the issue of the operating costs of banks in view of the disruptions emanating from the global economic difficulties and decided as follows:

In order to help minimize and mitigate the negative impact of the COVID19 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).

“To give effect to the above measure, 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.”