Nigerian bank workers are in for a rough time
as it's expected that banks would soon start sacking their employees.
An Afrinvest report has supplied evidence that banks are losing copious money.
According to the report, the sector's profitability was depressed in 2015 as profit before tax tumbled by a massive 28.4 per cent year-on-year, a loss which will throw several banks into panic mode.
Also, growth in industry gross earnings moderated to 10.3 per cent in 2015 (compared to 14.6 per cent in 2014); and liquidity in the banking system (especially among Tier-2 banks) was pressured by the TSA implementation, which sterilised approximately N1.2tn from the banking system.”
This drop in profit was caused by lower oil prices, FX volatility, liquidity concerns and a hazy economic roadmap by the government.
As a result of this loss, banks are expected to cut costs and reduce spending. One easy way to do this is to lay off workers.
Although the Nigerian government is against this and Chris Ngige, the Minister of Labour and Employment have pleaded with the firms not to lay off workers, this recent evidence of profit loss will put more pressure on the financial institutions to sack workers.
An Afrinvest report has supplied evidence that banks are losing copious money.
According to the report, the sector's profitability was depressed in 2015 as profit before tax tumbled by a massive 28.4 per cent year-on-year, a loss which will throw several banks into panic mode.
Also, growth in industry gross earnings moderated to 10.3 per cent in 2015 (compared to 14.6 per cent in 2014); and liquidity in the banking system (especially among Tier-2 banks) was pressured by the TSA implementation, which sterilised approximately N1.2tn from the banking system.”
This drop in profit was caused by lower oil prices, FX volatility, liquidity concerns and a hazy economic roadmap by the government.
As a result of this loss, banks are expected to cut costs and reduce spending. One easy way to do this is to lay off workers.
Although the Nigerian government is against this and Chris Ngige, the Minister of Labour and Employment have pleaded with the firms not to lay off workers, this recent evidence of profit loss will put more pressure on the financial institutions to sack workers.
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