http://www.newsdirectonline.com/newstory.php?ID=12957

Deposit Money Banks (DBMs) in the country have begun retrenchment of 11,600 employees following the Federal government’s implementation of Treasury Single Account (TSA), Nigerian NewsDirect can authoritatively report.

President Muhammadu Buhari had set a deadline of Tuesday, September 15 for full compliance with his directive that all revenues due to the government or any of its agencies must be paid into the TSA or designated accounts maintained and operated in the Central Bank of Nigeria (CBN), except otherwise expressly approved.

A lady in one of the leading commercial banks told our correspondent that operations of some key staff at their branches were no longer needed and since jobs had been centralized to the head office with the use of technology, some core employees have been pencilled down for retrenchment. However, she added that evaluation sheet would be used to select those that would be sacked.

A source who is a top management staff member of one of the first generation banks on condition of anonymity said, his bank was planning to sack core staff that failed to meet the new demand required by the management as a result of the new development-the TSA.

The source hinted Nigerian NewsDirect that, closure of government accounts with commercial banks had left the banks with no other option than to reduce their overhead costs in order to become more profitable.

The source expressed concerns that TSA policy, although designed to ensure accountability and transparency will hurt the economy as more people would be thrown into labour market soon by commercial banks.

According to him “As I speak with you now, about 1,000 of our workers are already on their way out, because we can no longer accommodate them, but what we have done is to lay off more of the desk officers”.

Asked why the attention is on desk officers, the source said, “If you lay off those who go out to look for deposits you will worsen the situation, so we have to look at the survival of the bank first, the consequence of allowing desk officers to stay and sacking those who bring deposits will be higher, therefore we took the safer option of letting desk officers go”.

Another source told our correspondent that about 1,700 employees that comprise 1,000 contract and 700 permanent staff of a leading bank have been pegged for sack.

Three leading banks with former President Goodluck Jonathan’s links that enjoyed easy access to government funds in the past are also affected most with a total 7,700 employees expected to be sacked from this week.

The rumour of staff retrenchment by Zenith Bank spread in Lagos last week as some online media organisations and a television station reported that the bank had sacked over 1,200 staff workers. The bank quickly debunked the rumour through text messages to some journalists and customers that there was nothing like that.

“Good day our media friends. Pls disregard any report of mass disengagement of staff by Zenith Bank. There is no iota of truth in such report. Thanks for your support”, the bank said in its text message.

Zenith Bank reported good profit and asset base in its half year report, a development that forced many finance analysts to doubt the possibility of staff retrenchment this year but market operators said the liquidity squeeze in the market as government moved its accounts to the CBN could expose many banks to serious distress.

Also the Media Relations Manager of United Bank for Africa Plc Mr. Nasir Ramon in response to an enquiry by our correspondent suggested that NewsDirect should look for another story to write that it was not true that UBA was planning to sack staff because of TSA. In some of the branches of UBA, information gathered that revenue target for marketers was being used to sack staff which did not begin as a result of TSA but started since the engagement of Executive Director South West poached from Zenith Bank Plc last year.

Also despite reports that Ecobank Plc gave sack letters to some of the staff workers last week, the Corporate Affairs officials of the bank denied knowledge of sack.

Presidential body odour

From LA casera to banks...9ja nawah o

May God help us

There are many economic policies in the world today that can be adopted but its stupidity to think it would work in all type of economies.

Is maintaining TSA a good initiative - Yes.... just like many other good initiatives
What is the main aim of TSA - to ensure no leakages of govt revenue across various ministries and MDAs
Is it the only way to check and curb the leakages – NO
What is the economic impact of implementing TSA – It will significantly impact the middle class, bank workers and SMEs (Small and Medium term enterprises)

What could have been done? – FG could have first documented the unremitted FG funds with these banks (These funds were not missing… they are known and with the commercial banks). Then begin a GRADUAL withdrawal of the funds from these banks in the space of a year or two to allow them sufficient time to react and retain their staff.

This was exactly the reason why NOI under GEJ took a gradual implementation of the TSA policy in order not to collapse the middle class as is currently being witnessed.

Buhari needed a finance minister first before anything… the harm is done already. Nigerians will feel the pain.

I feel for those who have lost and will lose their jobs in due course. But if this TSA thing will bring sanity to the polity then i'm all for it. To clean up this Augean stable called Nigeria requires making some tough decisions.

The money will come back to the system(banks)when the salaries of civil servants,govt suppliers and contractors and states allocation are paid.Everything will come back in the long run.TSA is just for collection of govt revenues.

Lots of them voted for CHANGE

for every action.. there is an equal and opposite reaction. sometimes adverse reactions follow.

Bubu's body odour oozing out workers nationwide.

Sai Change !

Said Babaooooooo!

Part of the campaign promise, to create over 1million jobs. No wonder they denied it

This is going to be sackerstick.

This TSA thing is like throwing a stone in the water and watching the ripples go in reverse.

It would probably cause more harm than good. Pooling more money for politicians and civil servants to steal. I hope I'm wrong though.

If TSA is meant to stop corruption in civil service and this banks want to sack 11 thousand workers , my is for those against TSA question is if the workers were employed for corruption or if the marketers are supposed to target the private sector !!!

mulante:
This TSA thing is like throwing a stone in the water and watching the ripples go in reverse.

It would probably cause more harm than good. Pooling more money for politicians and civil servants to steal. I hope I'm wrong though.

it will cause more good than harm...it is in the constitution but was not really implemented by previous administration...even if a saint becomes president he would need all the funds available...i also dont see how civil servants would benefit from implementation of tsa as they actually make more money when tsa was not effected than they would now (illegally of course)

Sack over 1million if possible...So Banks recruited based on Government Accounts? Our Banks were never private Sector Driven, That's why banks can never loan money to a poor fellow who wants to go into business even small scale business!! Over a trillion naira government money will be saved through TSA...

It's Just Like Saying we shouldn't have steady electricity supply in our homes because Generator importers and repairers might go out of business or Hungry...

Dear Buhari pls block all loopholes.. I'm tired of seeing government workers buying houses worth 800million in Asokoro,Wuse, Maitama n Gwarinpa...

The ultimate essence of governance is to better the life of the masses, but when the government is introducing a policy that affect the people negatively then we can say that the government don't have the masses at heart or it has lose direction ,that is if it had one before.

donholy28:
From LA casera to banks...9ja nawah o

Is a goodnews, we are cleansing d system from corruption

This is daft news reporting. On one hand article says 'breaking, banks to sack 11,000'. On the other hand, the banks zenith and UBA deny the stories. Yet it's 'breaking', with no credible source. Shioor!

Orjioorji:
The ultimate essence of governance is to better the life of the masses, but when the government is introducing a policy that affect the people negatively then we can say that the government don't have the masses at heart or it has lose direction ,that is if it had one before.

we can as well make sure that light does not become constant since it will affect the livelihood of generator importers and technicians

Good.

All those Yoruba job seekers will be forced back to farm cocoa.

Jwhizzy:
This is daft news reporting. On one hand article says 'breaking, banks to sack 11,000'. On the other hand, the banks zenith and UBA deny the stories. Yet it's 'breaking', with no credible source. Shioor!

Do you expect your employer to confirm that they will sack you on the pages of newspapers?

Moreover given the sensitive nature of the banking a news or rumour of downsizing will send negative signals to depositors and investors so they will never admit sacking!

But what I can confirm is that from Monday next week, most bankers who will report to their desk will find their login passwords returning "wrong password! Contact HR"

Lolz

WombRaiders:


Do you expect your employer to confirm that they will sack you on the pages of newspapers?

Moreover given the sensitive nature of the banking a news or rumour of downsizing will send negative signals to depositors and investors so they will never admit sacking!

But what I can confirm is that from Monday next week, most bankers who will report to their desk will find their login passwords returning "wrong password! Contact HR"

Lolz

This is unnecessary sensationalisation. Besides, I am yet to see anyone give an objective analysis on how the TSA is responsible for the loss of almost 12,000 jobs in the banking sector.

Change is hete
We should all embrace it.

sammyj:
If TSA is meant to stop corruption in civil service and this banks want to sack 11 thousand workers , my is for those against TSA question is if the workers were employed for corruption or if the marketers are supposed to target the private sector !!!

Olodo
Banks don't steal NA d agency dept steal
The money lodge in the banks is managed by pple nt by stick

Jwhizzy:


This is unnecessary sensationalisation. Besides, I am yet to see anyone give an objective analysis on how the TSA is responsible for the loss of almost 12,000 jobs in the banking sector.

A single account for govt MDAs will see all govt revenue deposited in various banks being moved to a single account most likely domiciled in CBN.

With so much liquidity outflow from banks coupled with the huge debt owed banks by your useless governors it is no suprise that most banks will be having serious cash crunch.

The only way out is to cut down on operation cost by sacking and closing branches.

This is what will transpire in banks by Monday

WombRaiders:
This is what will transpire in most banks by Monday...

Segun: Bayo, how is your network? I can't seem to login.

Bayo: let me see.. Are you sure you entered the right password? Because it is stating "wrong password"

Bisi: mine as well.

Ola: did you change it?

Bisi: No.

Taju: make I try login. Ahh! My own is also saying wrong password!

Mrs Folake (Branch Manager): Segun, Bisi, Taju pls see HR!

Ola : ogah ohh!

Bola: make I try see if my own go enter......

Ola: olorun Jesu!

Bola: What?

Ola: my password is incorrect!

Mrs Folake : bola and ola, when Taju , Bisi and Segun come back from HR, you should go and see her as well.

BUHARINOMICS

11,600 is a very conservative figure, what banks in Nigeria will sack in next two months is in the range of 20,000 or above, so Nigerians should brace up for some financial ill winds from the banking sector.

Good news in totality
Not all banks have govt patronage
Some banks were favored more than others
Let banks go back to the drawing table

yes they will sack. but they will be forced to lend entrepreneurs money.