The Association of Senior Staff of Banks, Insurance and Financial Institutions has raised the alarm over the rising rate of casualisation in Nigeria’s banking and financial sector, warning that it poses a serious threat to the nation’s economic future.
According to the association’s National President, Olusoji Oluwole, about 60 per cent of the operational workforce in Nigerian banks today are contract staff.
Speaking on Thursday during the annual conference of the Labour Correspondents Association of Nigeria, where he presented a paper titled “Casualisation in Banking and Financial Institutions,” Oluwole said the development had triggered deep concerns about job security, employee welfare, and the broader economic implications.
Oluwole explained that casualisation has led to multiple challenges, including a lack of career progression, wage disparity, limited access to benefits, and the absence of job security.
“It is reported today that the operational workforce of banks consists of about 60 per cent contract staff.
“The employee feels a sense of indignity and insecurity, and their useful years are reduced if they spend too much time as contract workers.
“This can lead to psychological and health strain, which may result in depression”, he said.
He further warned that casualisation not only harms employees but also exposes employers and the entire financial system to operational and reputational risks.
“Operational vulnerabilities, fraud, suppression, espionage, and loss of skills optimisation are some of the risks associated with casualisation,” Oluwole added.
To address the issue, he recommended stronger regulatory enforcement of rules governing contract employment, full implementation of career path development guidelines, and an urgent review of the Labour Act to reflect modern employment realities.
He commended the Federal Ministry of Labour for taking steps in the right direction, as well as employers who have already introduced career development paths for contract staff.
The practice of casualisation in the banking sector has long been criticised for its adverse impact on employees, including job insecurity, low pay, and poor career prospects.
A study on casualisation and employee performance in Nigerian commercial banks found that the trend has negatively affected workers’ commitment, with many employees reporting stress and anxiety over the uncertainty of their employment.
The Nigeria Deposit Insurance Corporation has also warned that excessive reliance on casual workers could increase fraud and security risks within the banking industry.
Stakeholders, including labour leaders and rights advocates, have repeatedly called for stronger regulations to safeguard the rights of casual workers. A former ASSBIFI president, Oyinkansola Olasanoye, once proposed the introduction of a regulated career path for casual workers under the supervision of the Federal Ministry of Labour.
Despite ongoing debates, the issue of casualisation in Nigeria’s banking sector remains unresolved, with some industry players insisting it is a cost-control measure necessary for competitiveness, while others describe it as a systemic form of exploitation that undermines productivity and economic stability.
