The Association of Senior Staff of Banks, Insurance and Financial Institutions on Thursday raised the alarm over the rising rate of casualisation in Nigeria’s banking and financial institutions. According to Olusoji Oluwole, National President of ASSBIFI, approximately 60% of the operational workforce in banks today consists of contract staff.
Speaking during the annual conference of the Labour Correspondents Association of Nigeria, Oluwole, who presented a paper on the topic, “Casualisation in Banking and Financial Institutions,” said the development has raised concerns about job security, employee welfare, and the overall impact on the economy.
Oluwole’s presentation highlighted the negative effects of casualisation on employees, including a lack of employment opportunities, salary inequality, and limited access to benefits and job security.
“It is reported today that the operational workforce of banks consists of about 60% contract staff.
“The employee feels a sense of indignity and insecurity, and there’s a reduction in useful years if they spend too much time as contract workers,” he noted.
“This can lead to psychological and health strain that could lead to depression.”
He also noted that casualisation has not only affected employees but also poses significant risks to employers and the economy at large. “Operational vulnerabilities, fraud, suppression, espionage, and loss of skills optimisation are some of the risks associated with casualisation,” Oluwole warned.
To address this issue, he recommended regulatory enforcement of rules on engaging contract workers, implementation of career path development guidelines, and a review of the Labour Act to address the issues in the guidelines.
He also commended the Ministry of Labour for taking steps in the right direction and employers who have implemented career paths for contract staff.
The practice of casualisation in the banking sector has been linked to various negative effects on employees, including job insecurity, low wages, and lack of career opportunities. A study on casualisation and employee performance in Nigeria’s commercial banks found that casualisation has negatively impacted employee commitment, with many workers experiencing stress and discomfort due to the uncertainty of their employment.
The Nigeria Deposit Insurance Corporation has also highlighted the risks associated with casualisation, noting that it can lead to increased fraud and security risks in the banking industry.
Stakeholders, including labour leaders and activists, have called for regulations to protect the rights of casual workers and ensure that they are treated fairly. A former ASSBIFI president, Oyinkansola Olasanoye, proposed the creation of a career path for casual workers through regulations in the Federal Ministry of Labour.
The issue of casualisation in the banking sector has continued to spark debate, with some arguing that it is necessary for companies to remain competitive, while others argue that it is a form of exploitation.
