Bank Workers in Nigeria may lose Jobs because of CBN Revised Model

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There are indications that some Deposit Money Banks may cut their workforce following the new banking model introduced by the Central Bank of Nigeria.

Our correspondent gathered that some banks might consider downsizing as an option to remain relevant under the new arrangement.

The CBN had last month issued new rules and guidelines following its review of the universal banking model in Nigeria.

Under the new model, new licences are to be issued to banks to operate as regional, national, international banking operations, merchant banking, specialised banking and development financial institutions.

The apex bank directed all DMBs to prepare and submit to it their plans on compliance with the new banking regime not later than 90 days from October 4, 2010.

Speaking to our correspondent on Saturday, the Managing Director/Chief Executive Officer, Capital Assets Limited, Mr. Ariyo Olushekun, said if national banks finally became regional banks following the provisions of the new banking model, employees might be affected.

The commencement of the CBN reforms had also seen many banks cutting the take-home pay of their employees, investigations by our correspondent also showed.

He said the banks that would eventually become regional banks would need to re-strategise to become national banks considering the CBN's move to totally reform the financial sector.

"I don't see many banks changing to regional banks," he said.

According to Olushekun, the new model will see some banks selling some of their holdings to private individuals or businesses.

He added that there would not be serious problems once the banks were able to run their businesses profitably again.

Read more: Bank Workers in Nigeria may lose Jobs because of CBN Revised Model.