The House of Representatives has passed the second reading of a bill aimed at regulating the employment of staff by Nigerian banks.
Sponsored by Fuad Laguda, an APC lawmaker representing Surulere I federal constituency in Lagos, the proposed legislation seeks to amend the Banks and Other Financial Institutions Act 2020 to “prohibit, criminalise and penalise” the hiring of casual or contract staff by banks.
During Thursday’s plenary, Laguda explained that the bill is designed to “totally mitigate” exploitative employment practices in the banking sector, protecting millions of Nigerians who work as casual or contract staff. He noted that existing laws, including the Labour Act 2004 and the Employees’ Compensation Act 2010, do not adequately safeguard the welfare of these workers.
Citing a 2023 report by the Chartered Institute of Bankers of Nigeria (CIBN), the lawmaker said banks often hire casual and contract employees to reduce operational costs related to pensions, minimum wages, health insurance, promotions, bonuses, study grants, and severance packages. He added that such workers make up about 65 percent of the total banking workforce.
The bill also seeks to curb violations of section 7(1) of the Labour Act 2004, which limits employment without formal recognition to three months.
“I urge my colleagues to support this bill because it corresponds with the viewpoints of the governor of the Central Bank of Nigeria, Mr Olayemi Cardoso, who said casual and contract staff in Nigerian banks are exposed to poor working conditions,” Laguda said.
He highlighted that banks often employ casual and contract staff to avoid legal and contractual obligations, leaving them vulnerable to systemic inequalities, emotional abuse, and mental health challenges.
When Deputy Speaker Benjamin Kalu called for a voice vote, lawmakers unanimously supported the bill, allowing it to advance to the next stage of the legislative process.
Sponsored by Fuad Laguda, an APC lawmaker representing Surulere I federal constituency in Lagos, the proposed legislation seeks to amend the Banks and Other Financial Institutions Act 2020 to “prohibit, criminalise and penalise” the hiring of casual or contract staff by banks.
During Thursday’s plenary, Laguda explained that the bill is designed to “totally mitigate” exploitative employment practices in the banking sector, protecting millions of Nigerians who work as casual or contract staff. He noted that existing laws, including the Labour Act 2004 and the Employees’ Compensation Act 2010, do not adequately safeguard the welfare of these workers.
Citing a 2023 report by the Chartered Institute of Bankers of Nigeria (CIBN), the lawmaker said banks often hire casual and contract employees to reduce operational costs related to pensions, minimum wages, health insurance, promotions, bonuses, study grants, and severance packages. He added that such workers make up about 65 percent of the total banking workforce.
The bill also seeks to curb violations of section 7(1) of the Labour Act 2004, which limits employment without formal recognition to three months.
“I urge my colleagues to support this bill because it corresponds with the viewpoints of the governor of the Central Bank of Nigeria, Mr Olayemi Cardoso, who said casual and contract staff in Nigerian banks are exposed to poor working conditions,” Laguda said.
He highlighted that banks often employ casual and contract staff to avoid legal and contractual obligations, leaving them vulnerable to systemic inequalities, emotional abuse, and mental health challenges.
When Deputy Speaker Benjamin Kalu called for a voice vote, lawmakers unanimously supported the bill, allowing it to advance to the next stage of the legislative process.
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