CBN, Bankers’ Committee Warn Banks Against Retrenchment

Apparent concerned about the implications of mass retrenchment in the banking industry amidst Covid-19 pandemic, the Central Bank of Nigeria and the Bankers’ Committee have directed banks to suspend retrenchment.

Rising from a special meeting of the Bankers’ Committee on Saturday, the CBN said the decision will help minimize and mitigate the negative impact of the covid-19 pandemic on the Nigerian banking industry.

A statement issued by the director of corporate communications at the CBN, Isaac Okorafor reads in full:

CBN, Bankers’ Committee Suspend Lay-offs in Banks
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:

1. 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).

2. 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.

The Central Bank of Nigeria solicits the support of all in our collective effort to weather through the economic challenges occasioned by the COVID-19 pandemic.”