we we:

Round and round we go, a failed economy will always result into job cut and other structural adjustment. A country where businesses depend solely on generator to function, do you know how much banks spend on fueling and maintenance those generation plant monthly? Businesses in developed nations are cutting jobs even with all social amenities in place. What do you expect in Nigeria case?  It is so unfortunate

True. Banks have over the last couple of years realized that they spend more than is justifiable on overhead costs. Depending on the size of the branch, it costs at least N150,000/month to buy diesel to run a generator in a branch (you will still pay NEPA bill of maybe the same amount). By the time you add staff salaries, premises maintenance, cash insurance and other costs you will arrive at a monthly expense sheet that runs into millions. Mind you, the branch may not even be making profit and if it is not, how is it supposed to pay for these expenses? This is common sense: if you had your own small business and you discovered that you were spending more than you were making what would be the most logical thing to do?
Job cuts are just one aspect of expense control that banks use. If a bank realizes that staff costs are too high there are two main options: slash jobs or slash salaries. Which is better, slashing salaries so that everyone can stay (under)employed but with poor pay, or slashing jobs so that fewer people will be employed but paid competitively?
I believe that Nigerian banks are being made to tread the path of financial prudence at least. That is the main thrust of Sanusi's reforms. For one thing, in today's banking sector customers no longer lose their deposits due to collapse of a bank.

yea sanusi has done it again. now leave that indoor ac life and face reality! besides, nigeria needs graduate farmers and there are large fields in the north. you are all welcome to move up into the hinterlands and till the soil. no food for lazy ppl. go develop the agricultural sector!

can someone please kindly explain to me how this is sanusi's fault?

IbroSaunks:

can someone please kindly explain to me how this is sanusi's fault?

If u still need someone to explain to you by now if its snausi's fault, then too bad.

madprof:

True. Banks have over the last couple of years realized that they spend more than is justifiable on overhead costs. Depending on the size of the branch, it costs at least N150,000/month to buy diesel to run a generator in a branch (you will still pay NEPA bill of maybe the same amount). By the time you add staff salaries, premises maintenance, cash insurance and other costs you will arrive at a monthly expense sheet that runs into millions. Mind you, the branch may not even be making profit and if it is not, how is it supposed to pay for these expenses? This is common sense: if you had your own small business and you discovered that you were spending more than you were making what would be the most logical thing to do?
Job cuts are just one aspect of expense control that banks use. If a bank realizes that staff costs are too high there are two main options: slash jobs or slash salaries. Which is better, slashing salaries so that everyone can stay (under)employed but with poor pay, or slashing jobs so that fewer people will be employed but paid competitively?
I believe that Nigerian banks are being made to tread the path of financial prudence at least. That is the main thrust of Sanusi's reforms. For one thing, in today's banking sector customers no longer lose their deposits due to collapse of a bank.

For your information, the banks are already doing both, that is underpaying its staff and still sacking alot of people.
The truth is cost of Operation in Nigeria is abnormally high if u consider u have to provide all the utilities for your self (like u have already pointed out)

andyanders:

In fact we make too much noise over the sacking of these staffs. It is only in Nigeria you see the kind of the numbers of staffs in banks. Some times, I wonder what their jobs are. You have a computer network and you find 10 staffs doing same jobs. The ladies put on provocative dresses walking around without doing anything. I went to one of the banks and I saw a lady always sanding in the banking hall of the bank whenever I go to the bank for any transaction. I called one of the tellers and I asked her what the ladies job is, I was told she is a customer relation officer. I now inquired what her duties are since she is always standing in the banking hall and I observed this for over one year. I was told that she only directs customers that walked into the banking hall. I asked the teller  the duty of the customer service officers since I saw about 3 of them sitting and attending to customers. The teller told me that, in fact, that they just wanted her there just doing nothing.

In the United States, you see very minute number of staff in a bank. But here in Nigeria, you see people who carry themselves as if they are lord. Leave the live of barons who deal on drugs. Manipulate accounts of people customers and say that they are wonder bankers.

Oga, i'm sorry but u are not correct. Thankfully, people like @GboyegaD and @kay-Dee have attempted to shed light on oversights u probably made in error.
Are there some branches that are over staff? Maybe, but i surely did not see any while i worked at the bank. Dont forget, even with all the technology available, people still like going to the banks to do their transactions and they want quick service, thats what gives the "wow" experience as a customer.
Like someone stated, i personally have entered enough wells fargo branches here where there is a designated person that says "hi, welcome to wells fargos" and even though nobody really goes to the branches in the US unless u absolutely have something to do that can not be done by phone or online (trust me, people go to bank twice a year) there are still a hand full of bankers everywhere at the branch.

It is Sanusi's fault because most of his 'reforms' are unnecessary and bad for the Nigerian economy especially at this present time. Personally, am yet to see any good only havoc from his 'reforms'.

They have only succeeded in instilling insecurity and fear in the heart of most bankers and also made them prone to commiting fraud since their jobs are no longer secured, any one could be laid off at any time.

^^^^well said, thats definitely one legitimate angle to look at it

Bankers in the house please ignore people who do not have solution to your problems.

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I was among those that were asked to resign in one of the Banks some years back and through God's help i stumbled on this business and i can say without any iota of doubt that it is a good business and the right time to start is now.

The question is why now? Answer: Dangote just built the largest Cement Plant in Africa and he needs you and i to distribute the cement to end users that are waiting eagerly with their cash to buy. He controls over 80% of the market and Government people are his friends so policy will always favour him. Also, he has two other plants: OBAJANA in KOGI and GBOKO in Benue.

God has favoured me that i can take my truck to any of this plants (as a distributor) and get cement out cheap, add my own margin and sell. I cannot do it alone, i need people like you to form a formidable NETWORK of cement distributors and retailers or transporters. Together we can bring down the price of cement drastically and impact people's life drastically as they can build their dream homes at minimal cost.

Banks are willing to help him succeed because if he fails some of them will die automatically becos they financed the $1billion plant. Let us join hands together and form our own LEGAL CEMENT DISTRIBUTION CABAL with our savings.

My people fellow ex bankers if you do not have enough money now, i will teach you how to raise money by selling some of your assets like Land or Car to start this business because if you don't OMO ONILE will collect the land from you due to your inability to develop it. Also, that Jeep you are cruising around will need money for maintenance and will soon turn to OLD SCHOOL. so sell them and raise money for your cement business and come to me for a chat.

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big_sean:

If u still need someone to explain to you by now if its snausi's fault, then too bad.

and is that answering the question

spicyhoney:

It is Sanusi's fault because most of his 'reforms' are unnecessary and bad for the Nigerian economy especially at this present time. Personally, am yet to see any good only havoc from his 'reforms'.

They have only succeeded in instilling insecurity and fear in the heart of most bankers and also made them prone to commiting fraud since their jobs are no longer secured, any one could be laid off at any time.

I am not particularly a Sanusi fan, but please explain how his reforms are "bad". That people should be encouraged to embrace cashless and electronic means of doing transactions? That banks should have the consciousness to watch their expenses (which will produce a healthier banking sector)? Or creating a system that rescues an ailing bank through nationalization thereby securing depositors' funds?
I'm sure you know that people will always comit fraud whether their job is secured or not, it is human nature to be dishonest, cheat or steal.
It might interest you to know that banks spend quite a fortune managing liquid cash, most of which should not be in circulation to begin with. Do you recommend that banks continue spending more than they can afford?

I wont really blame Sanusi because I think by the reforms, he's trying to prevent a future catastrophe that might have worse effects than what we're seeing now. Unless there's an (additional), different motive which i'm not aware of.

With all the banks presenting the same assets @ different times of the year, shareholders were being misled and the economy, on paper was looking better than it actually was in reality; and with the amount being given out as loan, way above the minimum lending  . . . . . .  (a certain percentage of depositors' money, cant remember what its called now), depositors were @ risk of losing their money.

It looks more like financial cleansing of the banking sector. But with all the branches these banks have with new ones popping up everywhere as I noticed from last time around, these banks will always need more hands, unless they plan to shut down some of these branches.

When ll the islamic banker term expire so that soludo ll be recall to come and clean up this mess?

Oh Well, the Bankers themselves better start making preparations. . .so as not to be taken unawares.

Never mind, time heals all wounds. Sanusi will soon be forgotten like the other CBN Governors. Good for him he goes away with his money. He will soon be history.

how is this sanusi s fault? lots of ignorant people on here i can tell , nigerian banks have too many overbloated workforce which they dont need and an industry that can not sustain itself in times like these, job cut is part of the measures used by organizations to reduce overhead so as to remain active and competitive its a measure that is inevitable in situations like these or they go the other way reducing wages so as to keep their overbloated workforce which to me its like postponing your judgement day which will eventually come, if banks like these can not continue to sustain themselves. banks in the UK constantly prefer to downsize as they call it or in more popular terms job cut, i use to wonder why there are so many staff in all this nigerian banks that practically do nothing and all i use to see in these banks are ladies dressed provocatively i bet they do nothing for these banks and i see some workers doing their teller work diligently. every time i walk into any banks branch here in the UK i bet there are not more than seven staff in these branches compared to the nigerian banks please feel free to help me count how many workers we can find in our nigerian banks in times like these there are price to be paid british banks all went through all these transformation to get to where they are today so it not new in the financial sector i guess nigerians should not be blamed they are still getting used to situations like these i bet in couple of years time when we hear the WORDS REFORM, MERGER AND ACQUISITION in our organizations everybody then will know what will follow, times have changed ppl nigerian banks basically want to start practicing real banking now not what used to obtain years ago dunno what it was called then oh i remember one aggressive marketing and banking lol, when peoples money are involved in situations like these a lot is at stake.

spicyhoney (f)
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Re: Banking Reform: More Workers To Lose Jobs
« #37 on: Yesterday at 09:31:43 PM »

It is Sanusi's fault because most of his 'reforms' are unnecessary and bad for the Nigerian economy especially at this present time. Personally, am yet to see any good only havoc from his 'reforms'.

They have only succeeded in instilling insecurity and fear in the heart of most bankers and also made them prone to commiting fraud since their jobs are no longer secured, any one could be laid off at any time.

GBAM!!

We learnt very early in life to judge a tree by its kind of fruits. Wisdom is known by her End products!! - NOT by the methods, or the intentions!! In any case i don't see a man with bad motives producing a Clean Outcome. But lets get beyond SLS. Wherever you are, be prepared in advance for the Evil day, 'i[b]f you fail in the day of adversity, it means your strength was small all along[/b]'.Some people who could have made sure the wrong set of people dont end up in the saddle of leadership did nothing, and were CONSUMED!! You prepare for WAR in time Of Peace. The price you have to pay for your freedom is Vigilance. Else, you'l be taken unawares, and the result is REGRETS, REGRETs, REGRETS!

The issue is that the banks are nothing making enough money compare to their lifestyle. even in US the bankers are not making money a such.

All those blaming Sanusi can please go ahead,

All I know is that, when this cashless system gets fully online and most transactions become automated, more bankers would get fired.

Okija_juju:

All those blaming Sanusi can please go ahead,

All I know is that, when this cashless system gets fully online and most transactions become automated, more bankers would get fired.

If that happens who's fault will it be then?

nakedall:

The issue is that the banks are nothing making enough money compare to their lifestyle. even in US the bankers are not making money a such.

What exactly are you trying to say? Banks or bank workers - who is not making enough money. Because you argument seems not only unclear but shallow.