ASSBIFI Asks Banks not Sack Staff over COVID-19

Comrade Oyinkansola Olasanoye, national president, Association of Senior Staff of Banks, Insurance and Financial Institutions (ASSBIFI), has faulted faults plans by some banks to retrench workers over coronavirus pandemic crisis.

Though, Olasanoye, said she is not not anticipating banks laying-off workers because of this virus, she, however warned that any bank that does will face the repercussion.

“I am not expecting any bank in Nigeria to lay-off staff. However, there will be effect on the profitability of the banks and there are going to be effects on people that took loan because they cannot go into production: she told Guardian in an interview.

She said that “Although the Federal Government has announced that there should be reduction in interest rate for people that have loans, but now we are not talking about interest rate but them producing in order to have the ability to pay back.

“When we look at all these, it is going to affect production, affect the exportation of our crude oil, and the importation of petroleum products very soon, because when you can’t export, you can’t import too and there are people that most of the raw materials they use are imported.

“I know it is going to affect the banks because many of these companies are on one loan or the other, and the only loan the CBN can specifically ask is interest rate to be reduced on are the loan that is directly sourced from them. I could see that it will not be immediate, which at the end of the year, there may be job loss, because at the end of the year, when it comes to the profitability of the banks, it is going to be very low” she added