In this interview with HENRY FALAIYE, the National President of the Association of Senior Staff of Banks, Insurance, and Financial Institutions, Olusoji Oluwole discusses the challenges facing the banking sector, labour relations, and the impact of economic policies
What is your assessment of the Nigerian banking sector in terms of labour relations and employment conditions?
Compared with the past, there have been relative improvements in compensations and working conditions, particularly after the Covid-19 pandemic in 2020. However, we also find a few cases of employers’ insensitivity to the fate of their workers by disengaging them without justifiable reasons and the commensurate compensations as prescribed in the Labour Act and ILO Convention 158. This is more worrisome for us, especially at a time like this when the nation is faced with inflation and high costs of living caused by the economic downturn and devaluation of the currency. The shock of being thrown into the labour market has been immeasurable for them and has led to serious health challenges and at least one death in the last year. While we commend employers who have, however, done well in employee welfare, we believe there is still room for improvement and challenge other employers to take a cue from them and act accordingly.
How have recent economic policies, such as FX liberalisation and high inflation, impacted bank workers?
The impact on workers in the financial sector comprising banks, insurance and financial institutions is not different from the regular Nigerian. In fact, I will say it is worse, as the general belief is that we are insulated from the challenges due to the perceived notion that workers in the sector have unlimited access to financial resources, and this puts a lot of pressure on our members. We use the same services and pay the same prices and probably higher taxes and are indeed struggling to balance the cost of living. This does not include the fact that due to regulations within the industry, workers, particularly in banks, are bound by some lifestyle codes of conduct that are not applicable in other industries.
With the increasing digitisation of banking, do you foresee significant job losses, and what steps is ASSBIFI taking to protect workers?
Digitisation of banking is not new, though it is more pronounced with the advent of fintechs, and it is a general challenge, not just restricted to bank workers. However, while job losses may occur, we do not foresee them to be significant. On our part, we continue to encourage our members to improve their skills in the space and appeal to employers to invest in training and upskilling of employees. Everyone has a role to play in digitisation, and it’s not restricted to developers. There is a limit to what a digitised service can do without human intervention, and most importantly, we cannot ignore the value of experience, especially at moments when automation goes wrong. Every responsible employer will know this and not put their institution at risk.
Many bank employees, especially contract staff, complain of poor remuneration and job insecurity. What is ASSBIFI doing to address this?
The issue of compensation is unique in this industry due to the absence of a harmonised appraisal and compensation structure like we have in the civil service. However, we continue to engage member organisations on a case-by-case basis using parameters that are peculiar to each one. This is part of the welfare issues I mentioned previously, and while we find some employers acting positively without prompt, it requires a lot of negotiations and interventions to get others to pay their workers fairly in line with their performance.
How effective has ASSBIFI been in negotiating better wages and working conditions for bank employees in light of rising inflation?
In some cases, employers have actually acted proactively without our intervention; others have negotiated based on agreed structures, organisational performance, and cost of living, while we have those who try to devise means of short-changing their workers while making provision for what we see as luxurious provisions for themselves and their boards. While we do not have any objection, it is only fair that the efforts of the workers who have laboured for the profits being appropriated must be recognised and justly rewarded.
Do you believe the current labour laws in Nigeria adequately protect bank workers? If not, what changes would you like to see?
The current laws are some of the unfriendliest that we have in the world labour community and are being exploited by employers. Sadly, the current one being reviewed by the National Assembly is in itself already obsolete, requiring further reviews. The complacency of those charged with the review is disappointing and only confirms that the government is not sincere in allowing labour unions to thrive in the country despite being a member nation in the ILO and a signatory of several labour-related conventions.
With the recent push for banking sector consolidation and recapitalisation, what are the potential labour implications for bank employees?
The recapitalisation is expected to lead to expanded activities and growth in the sector and therefore likely to increase the need for more bank workers. The burning issue is of mergers or acquisitions resulting from banks’ inability to meet the minimum capital requirement. We have raised our concerns and notified our labour centre and regulators of our interest and the need to approach this issue strategically and fairly.
What is your view on regulatory pressures on banks concerning cashless policies and high cash reserve ratios? How do these affect workers?
Most of the regulations have always been in place, but the CBN in recent times has been very focused on compliance. Workers are now required to be intentionally focused on meeting the regulations to avoid sanctions to them and their institutions.
Many ex-bankers struggle with pension payments and retirement benefits. What is ASSBIFI doing to ensure proper pension coverage for bank employees?
Every bank employee is signed on to a contributory pension scheme as prescribed by law. So far, we are not aware of any employee within our association not covered by the scheme.
There are reports that some financial institutions do not remit pension deductions as required. How can this issue be tackled?
All institutions are expected to remit employer and employee contributions within a specified period of time. Failure to do so is sanctionable when reported, and as an association representing workers, we will not hesitate to report any institution that defaults.
With AI and fintech innovations reshaping the banking sector, what is the future of traditional banking jobs?
We are in an era of unprecedented innovation, where traditional banks are rapidly evolving to meet changing customer expectations. The COVID-19 experience proved that physical presence in banking halls is no longer a necessity, forcing banks to rethink their operational models. However, this shift does not eliminate jobs; rather, it reshapes roles to align with technological advancements. Traditional banks are investing heavily in digital banking, automation, and AI-powered customer service, requiring employees to adapt to new skill sets in fintech, cybersecurity, data analytics, and customer engagement in a virtual environment.
Even fintech companies, which are seen as disruptors, rely on human expertise to drive their operations. Many of their employees are recruited from traditional banks, bringing valuable industry knowledge. This transition highlights the need for continuous reskilling, ensuring that banking professionals remain relevant in a technology-driven economy.
Instead of job losses, the industry is witnessing a shift from routine tasks, such as teller services, to higher-value roles, such as digital financial advisory, fraud detection, and regulatory compliance. The banking sector’s evolution is not about replacing people with technology—it’s about redefining their roles to enhance efficiency, improve financial inclusion, and provide seamless, customer-centric financial solutions in a digital world.
What strategies should bank employees adopt to remain relevant in an increasingly tech-driven industry?
We strongly encourage our members to stay informed about current developments in their respective fields and invest in continuous personal and professional development. In today’s fast-changing world, staying relevant requires acquiring new skills, knowledge, and technical expertise that set individuals apart. Opportunities for growth and advancement abound, but only those who are prepared, adaptable, and proactive can take full advantage of them. By keeping up with industry trends, embracing innovation, and honing their technical capabilities, our members can position themselves as valuable assets in any sector. The future belongs to those who are ready for change, and we urge everyone to take deliberate steps toward self-improvement to remain competitive and relevant in the evolving global landscape.
