Bank Retrenchment: Licences Of Erring Banks Will Be Withdrawn – Ngige


The Federal Government on Tuesday for the second time warned financial institutions in the country to stop further retrenchment of workers or risked being sanctioned. Minister of Labour and Employment, Chris Ngige, who gave the warning in Geneva while addressing newsmen on the sideline of the on-going 105th session of the International Labour Conference (ILC), said if banks refuses to adhere to FG directives, their licences will be withdrawn.

Also See: Read What Skye Bank Did To Survive The Economic Crunch

He said:

“The Federal Government gave the licences to the banks to operate and if its directives are not adhered to the licences will be withdrawn if the need arises.

“We will go a step further if they continue. We know what to do. They need to comply. They need to come to the negotiation table. We halted the spate of sack in the oil industry and we succeeded.

“Even if you are going to lay off, there is a way to declare redundancy, there is a process. Section 20 of the labour act says it. You must call the unions and discuss with them. You don’t just treat them as slaves in their own country and you want us to keep quiet.

“We want them to maintain the status quo. As far as I am the Minister of Labour, I will protect the interest of workers; same to the telecommunication companies, they are also talking about compiling lists without discussing with anybody.”

Chris Ngige
Minister of Labour and Employment, Dr.Chris Ngige

The Minister had last week directed banks and financial institutions, to suspend further retrenchment of the workers following reports that some of them have embarked on that. Diamond bank had last week sacked about 200 workers, followed by Eco Bank who laid off over 1,000 staff .

Also See: FG Orders Banks To Stop Sacking Workers

Skye Bank Plc. had on Monday, defied the Federal Government’s restraining order on further dismissal in the banking sector and dismissed 175 0f its staff.

The Minister also cautioned the managements of telecommunication companies, said to be compiling lists of staff they will retrench without discussing with anybody, against such action.