Economic Recession:Banks to begin shutting down branches


According to Punch, deposit banks in the country are set to kick off the shutting down of some of their branches across the country even as the federal government tries to increase its workforce.

The banks say that they will shut down ‘unprofitable branches’ before the end of the year.

Dr Chris Ngige, minister of labour and employment had tried to stop the sacking of bank workers.

We have laid off some of our staff members but that it still not enough. Many branches are just existing for the sake of being there. They are not generating enough income. What they are bringing in is far less than what the bank is incurring as costs on them.

“We may have to close such branches before the year ends. I know a number of other banks that are planning something similar,” Punch quoted an executive director in one of the banks as saying.

It also reported that most of the banks would lay off hundreds of workers between now and December.

This is coming barely a day after Unity Bank Plc laid off about 300 workers. Earlier in the year, other banks like Diamond Bank, Ecobank and Skye Bank had sacked over 3,000 members of their workforce, prompting minister of labour Chris Ngige to threaten them with sanctions.

Source: Punch


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