Nigerians are demanding lawmakers’ action to extend debate on contract staffing in banks to other sectors where the issue is also of critical concern.
Their reactions followed a bill seeking to regulate the employment of staff by Nigerian banks, which has passed the second reading at the House of Representatives.
They want any attempt by the lawmakers to amend the laws to enforce regulation on contract staffing to be holistic.
It should look into the activities of contract staffing in other sectors, including the Nigerian National Petroleum Corporation (NNPC) Limited, the Central Bank of Nigeria (CBN), universities, oil and gas, and manufacturing companies, they urged.
Lawmakers’ debate
Fuad Laguda, a member of the All Progressives Congress (APC) representing the Surulere 1 federal constituency of Lagos, had sponsored a bill to amend the Banks and Other Financial Institutions Act (BOFIA) 2020 to “prohibit, criminalise and penalise” the employment of casual or contract staff by banks.
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Leading the debate, Laguda stressed that the objective of the proposed law is to “totally mitigate” employment in banks to remove “exploitative and oppressive treatments of millions” of Nigerians who work as casual or contract workers in the financial sector.
He noted that the Labour Act 2004 and the Employees’ Compensation Act (ECA) 2010 do not provide for the welfare of casual and contract staff.
The lawmaker, while citing a 2023 report by the Chartered Institute of Bankers of Nigeria (CIBN), said banks use casual and contract workers to reduce costs for operations such as pensions, minimum wages, health insurance, promotions, bonuses, study grants, and severance packages.
He asserted that casual and contract workers formed about 65 per cent of the entire workforce in banks, maintaining that the bill seeks equitable treatment for all Nigerian workers.
He explained that the proposed bill aims to curb the “heinous practices” of banks breaching the provisions of section 7(1) of the Labour Act 2004, which states that an employee should not be employed for more than three months without the formal recognition of such employment.
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“I urge my colleagues to support this bill because it corresponds with the viewpoints of the governor of the Central Bank of Nigeria (CBN), Mr Olayemi Cardoso, who said casual and contract staff in Nigerian Banks are exposed to poor working conditions,” Laguda said.
He added that banks usually employ casual and contract staff to avoid entering into any legal and contractual obligations with them, and they are subject to systemic inequalities, emotional abuses, and mental health challenges.
Following his prayers, the lawmakers unanimously voted in support of the bill at Thursday’s plenary when Benjamin Kalu, the deputy speaker, called for a voice vote.
Concerned reactions
Many Nigerians who reacted to the post on Facebook want the lawmakers to ensure that the laws are holistic and cut across all types of labour in every sector of the economy.
Commenting, Ibraheem Adegbokiki said, “Banks would always find their way in using contract staff. I had been a victim. Banks make use of recruiting and sourcing companies to get staff.
“The banks would claim the staff don’t work for them but work for those companies….so far, banks have cleaners, drivers, security men and others recruited under those companies; banks would continue to have contract staff.”
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Emmanuel Goodmanners Onoh commented, “That bill will not see the light of day. Only the banks know how to manage their overhead costs, and no legislative policy will assist them in enhancing their bottom lines. Reps should rather concentrate on reviewing the constitution and the electoral laws.
Olawale Owodeinde said, “I wholeheartedly support the proposed bill to criminalise the employment of contract and casual staff in Nigerian banks, and I want all federal legislators to support it as well.
“Having experienced the hardships of such arrangements for almost a decade, I can attest to the need for change. This bill’s scope should be expanded to protect workers in other sectors as well, ensuring fair labour practices and job security for all.”
Faloye Oludare Ade said, “Same with Universities too, because how can a grown-up works in a university for 20-30 years as casual staff without any tangible remuneration for retirement?”
Edison Okereke added, “It’s not only Banks that should be prohibited from doing so because Organisations and parastatals of the federal government are in the same business of giving contracts to retired staff to continue, and new ones are being hired as contract staff.”
Alex is a business journalist cum data enthusiast with the Pinnacle Daily. He can be reached via ealex@thepinnacleng.com, @ehime_alex on X
