Nigeria bank layoffs barred as crisis hits economy
Reuters
Published May 04, 2020 16:35
By Chijioke Ohuocha
ABUJA, May 4 (Reuters) - Nigeria's central bank has barred
commercial lenders from laying off staff as part of measures to
minimise the impact of the coronavirus pandemic on households
and the economy.
The regulator said that was suspending lay-offs by banks and
that commercial lenders would need its approval in the event it
becomes necessary to sack workers.
Nigerian banks, which had previously only required central
bank approval to sack senior management and to shut branches,
are analysing the impact of the coronavirus crisis on their
business, loan books and operating costs.
Some are considering forbearance on loans to help customers
weather crisis, banking sources told Reuters.
Access Bank ACCESS.LG , Nigeria's largest lender, cut staff
salaries and sacked contract workers accounting for 75% of its
30,000 workforce to save costs, banking sources told Reuters.
Africa's largest economy relies for 90% of its foreign
exchange on oil and the price plunge triggered by the pandemic
has hammered its currency NGN=D1 and cut government revenue.
Nigeria was already struggling to shake off the long-term
impact of a 2016 recession before the coronavirus pandemic hit
economies worldwide.
The central bank said in a statement released on Sunday that
it discussed the operating cost of banks in light of the
disruption caused by the pandemic and that its decision was made
at a bankers committee.
The regulator, battling to stimulate the economy and curb
inflation, has kept banking system liquidity tight to lure
foreign investors into treasury securities to support the naira,
which has hit new lows on the black market in recent weeks.
Nigeria began easing restrictions on Monday in its capital
Abuja and in largest city Lagos, heralding the reopening of
Africa's most populous nation after more than four weeks of
coronavirus lockdown.
The government has said a stay-at-home order in place since
March 30 in Abuja and the states of Lagos and Ogun will be
lifted gradually over a six-week period. Data from the statistics office on Monday showed that 40% of
people in Nigeria live in poverty, underlining the low levels of
wealth in the West African nation.
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Written By: Reuters
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