The Nigerian financial sector is currently experiencing a state of panic due to the significant number of job losses resulting from banks’ efforts to meet the recently announced minimum capital requirements set by the Central Bank of Nigeria.
Olusoji Oluwole, the National President of the Association of Senior Staff of Banks, Insurance and Financial Institutions, expressed these concerns during an interview with Channels Television on Monday.
Oluwole stated that the Association had already notified both the CBN and the Ministry of Labour about the potential impact of the recapitalization exercise on workers within the sector.
He emphasized the importance of learning from past experiences, such as the recapitalization program in 2005, where some banks managed to meet the requirements independently, while others resorted to mergers or acquisitions.
Oluwole acknowledged that such exercises inevitably lead to job losses and called for fairness from the banks to ensure that their members are adequately protected and compensated.
OBASANJONEWS24 reported that the Central Bank of Nigeria recently increased the minimum capital requirements for various types of banks by a significant percentage last week.
This move was aimed at supporting the goal of achieving a $1 trillion economy during President Bola Ahmed Tinubu’s administration.
The CBN stated that this exercise would lead to the establishment of stronger banks capable of providing higher levels of credit and loans.
This recapitalization initiative marks a significant event, as the last exercise of this nature was carried out almost two decades ago, in 2005.
Unfortunately, the repercussions of this exercise led to the loss of jobs for thousands of employees in banks like Oceanic Bank, Fin Bank, Spring Bank, Union Bank, Intercontinental Bank, and Stanbic IBTC.
The impact of the 2024 recapitalization announcement has caused a ripple effect throughout the banking industry in the country.
