NUBIFIE Expresses Concern Over Low Contract Staff Conversion Rates in Nigerian Banks

The Nigeria Union of Banks, Insurance and Financial Institutions Employees (NUBIFIE) has raised alarm over the low rate of contract staff conversion to permanent positions in the banking sector. The union has called for urgent reforms to address the growing concern, highlighting the precarious working conditions faced by many contract employees in the industry.

Contract staff in banks, often employed to fill short-term positions or handle specific projects, have long been a part of the financial sector workforce. While these positions provide employment opportunities, the union argues that the lack of pathways to permanent employment results in job insecurity and stifles career growth for many workers.

According to NUBIFIE, the current practice of using contract workers for extended periods—sometimes for years—without offering permanent status is exploitative and undermines the principles of fair labor practices. The union points out that many contract workers in Nigerian banks perform tasks comparable to those of their permanent counterparts but are denied the benefits and job stability that come with full-time employment.

One of the key issues highlighted by NUBIFIE is the absence of clear policies regarding the conversion of contract staff to permanent roles. While some banks have conversion programs, these are often sporadic, inconsistent, or based on criteria that are not transparent. As a result, many capable and experienced workers find themselves in a cycle of temporary employment, with little hope of advancement or long-term security.

The union is also concerned about the growing reliance on contract staff by banks to cut costs. While this practice may reduce operational expenses in the short term, NUBIFIE argues that it negatively impacts employee morale and productivity, as contract workers often feel undervalued and excluded from key decision-making processes.

NUBIFIE has called on the Central Bank of Nigeria (CBN) and the National Assembly to intervene, urging them to establish regulations that mandate fair treatment and clearer pathways for contract staff to secure permanent positions. The union also advocates for better labor protections, including healthcare benefits, pension contributions, and other entitlements for contract workers.

Despite these challenges, some banks have responded to calls for reform by initiating programs aimed at improving the treatment of contract employees. These include training opportunities, performance reviews, and clearer guidelines for potential conversion to permanent positions. However, these efforts are still limited and not universally applied across the sector.

NUBIFIE’s concerns reflect broader issues within the Nigerian labor market, where temporary and contract-based employment is becoming increasingly common. While such arrangements may offer flexibility for employers, they also leave workers vulnerable to exploitation and lack of stability.

The union’s call for action is timely, as it aligns with ongoing national conversations about labor rights, economic inequality, and the need for reforms in the Nigerian banking sector. As the industry continues to evolve, ensuring that workers—whether permanent or contract—are treated fairly and with dignity will be essential for fostering a productive, equitable workforce.

Ultimately, addressing the issue of contract staff conversion could contribute to a more sustainable and inclusive banking sector in Nigeria, one that values its employees and invests in their long-term growth and development. The coming months will be crucial in determining whether the sector will heed the call for change.