Reps seek ban on casual, contract staffing in banks

The House of Representatives has advanced a bill aimed at ending the use of casual and contract staff by Nigerian banks.

The proposed legislation, which passed second reading, seeks to amend the Banks and Other Financial Institutions Act (BOFIA) 2020 to prohibit, criminalise and impose penalties on banks that engage casual or contract workers.

Sponsored by Fuad Laguda (APC, Surulere I, Lagos), the bill was debated during plenary, where the lawmaker said the initiative is designed to curb what he described as exploitative and oppressive labour practices in the banking sector.

Laguda argued that existing laws, including the Labour Act 2004 and the Employees’ Compensation Act (ECA) 2010, fall short in adequately protecting the welfare of casual and contract staff.

He cited a 2023 report by the Chartered Institute of Bankers of Nigeria (CIBN), which indicated that banks rely heavily on casual and contract workers to cut operational costs associated with pensions, minimum wage compliance, health insurance, promotions, bonuses, study grants and severance packages.

According to him, casual and contract staff account for about 65 per cent of the total workforce in Nigerian banks, stressing that the bill seeks to promote fairness and equal treatment for all workers.

Laguda further noted that the bill would address what he termed “heinous practices” by banks that violate Section 7(1) of the Labour Act 2004, which stipulates that no worker should be employed for more than three months without formal recognition of employment.

He urged his colleagues to support the bill, noting that it aligns with concerns previously raised by the Governor of the Central Bank of Nigeria (CBN), Mr Olayemi Cardoso, over poor working conditions faced by casual and contract staff in the banking industry.

The lawmaker added that such workers are often denied legal and contractual protections and are exposed to systemic inequality, emotional abuse and mental health challenges.

The bill received overwhelming support from lawmakers and was approved through a voice vote conducted by the Deputy Speaker, Benjamin Kalu.