The banks should start investing more into agriculture and small and medium scale enterprises that will stimulate growth.

Provie:
Personally I tink salary restructuring is far better dan mass retrenchment. Restructuring in such a way dat low earners are not really affected. I'm particular about very high earners. Wen pursued, it is a good way to bridge inflation & ensure stronger middle class.

Fat NO sir.
In a recession retrenchment and salary reduction only compound the problems. The thing to do among others in a period like this is to encourage more spending. I mean just spend and spend

God, please restore the glory of Nigeria!

May God help Nigeria

basilo101:
Dayo Oketola, Nike Popoola, ‘Nonye Ben-Nwankwo, Fisayo Falodi, Gbenro Adeoye, Tunde Ajaja, and Jesusegun Alagbe

Hit by the current economic recession in the country, most money deposit banks and insurance firms have slashed their workers’ salaries by between 20 and 50 per cent.

Investigations by Saturday PUNCH revealed that Diamond Bank Plc, Heritage Bank Plc, Zenith Bank Plc, First Bank Plc and Wema Bank Plc have reduced their workers’ salaries as of August 31, 2016. This has also been confirmed by management sources and workers in the affected banks.

While Diamond Bank was said to have slashed salaries by 30 per cent, Heritage by 30 per cent, First Bank and Wema Bank workers’ salaries were slashed by 20 per cent each.
It was learnt that the banks tied the decision to cut salaries to workers’ ability to meet deposit targets, which have become unrealistically high in recent time. Hence, workers who failed to meet their targets had their salaries slashed.

Investigations also revealed that some insurance companies have extended the targets of premium generation to their employees.

Before, the marketing departments of the underwriting firms and insurance agents were responsible for generating premium for the companies.

Due to the economic crisis in the country, many insurance firms increased the targets for their marketing departments’ workers with threats of not paying them salaries if they failed to meet it (targets). As such, insurance workers who failed to meet their premium targets, according to industry sources, also had their salaries slashed.

An insurance employee, who spoke to one of our correspondents, said, “Before, it was only the marketers that they used to give targets to. Now, some of us also have targets ranging between N40, 000 and N100, 000 monthly and our promotion and salaries are tied to our performance.”

A Zenith Bank worker, who simply identified herself as Nkem, confirmed the slash in salaries.

Nkem said she resumed work after her annual vacation only to discover that she didn’t get the same salary that she had always received.

Similarly, another Zenith Bank employee, who spoke on condition of anonymity, told one of our correspondents that there was eight per cent cut in their salaries, beginning from August.

The source said the reason given by the bank was that the workers had not been paying the correct tax, hence, the bank had to start the deduction to regularise the tax payable.

On the fear that some workers could be sacked, the source said such fear had always been there, but the current one was beyond description.

He said, “The problem now is that there has not been any promotion since last year, which seems strange.”

An employee of First Bank, who spoke on condition of anonymity, said he had been sleeping and waking up in worry in the past two weeks due to fear of being sacked.

The banker, who just got married in Lagos, said workers had received an email from the bank’s Managing Director about a “new development soon.”

He said, “We have been receiving hints of more lay-offs due to the economic recession in the country, which has deeply affected the banking sector. Some employees lost their jobs two months ago. We also learned that another set of people will be laid off between September and October.”

Saturday PUNCH learnt that Ecobank has yet to slash its workers’ salaries, but there is apprehension among the bank’s employees that their pay might be slashed any moment from now.

One of the bank’s senior members of staff, who preferred to be addressed as Handsome Guy, said it had become a tradition among Nigeria’s banks to be imitating one another’s policies, especially those affecting workers’ welfare.

A worker with First Bank Plc, who simply identified himself as Jimson, confirmed to one of our correspondents on Thursday that most bank workers now go to work with the fear that they could be sacked anytime.

“There is perpetual fear in all banks. Every category of workers in the banks is affected by the economic crisis,” he said.

He, however, noted that some bank workers had been resigning and travelling abroad, especially the United States and Canada, to avoid being sacked.

Jimson said, “One of my colleagues just resigned last month because of the fear of losing his job and travelled to the U.S to seek greener pastures. But those who are not interested in leaving Nigeria have devised many means to survive the harsh economy should their letters of sacking come anytime. They are setting up small scale businesses.

“The most common ones are laundry services and restaurants which require capital outlay of N500, 000.

“The academically-sound ones among them have been moving to private universities to take appointments there. The problem is on the high side now. There is perpetual fear among bank workers that they can be fired at anytime.”

The National Union of Banks, Insurance and Financial Institutions’ Employees confirmed the development in the banks to Saturday PUNCH.

NUBIFIE Secretary General, Mohammad Sheick, said the issue had become a serious concern to the union.

Sheick said, “There is apprehension in the banking sector. Recently, there was mass sacking by banks and the Federal Government directed that those who were sacked during that period should be recalled.

“We have had about two meetings with the Federal Ministry of Labour on the issue and we are hopefully looking at the possibility of the ministry calling us to another meeting so that we can have an understanding on how to respond to the emerging issues like economic recession and other factors that are affecting the operations of banks.

“Even before the economic recession, the banks have always responded to any policy of the government negatively. The first thing that came to the mind of the banks’ management, which the union has always disagreed with, is to lay off workers.

“They (banks) have to think outside the box and objectively. If they want to cut cost or reduce certain expenditure because of certain government’s policy, then the reality is that they should know where they should direct their attention.

“I can volunteer to say that the thing that eats deep into banks profit and loss is nothing other than the kind of lifestyle of the management staff of the banks. For example, the monthly salary of one executive director is more than the salaries of 100 workers. This is apart from other privileges and perks attached to him as an executive director.”

The Head, Corporate Communications, First Bank, Mr. Babatunde Lasaki, denied that the lender cut its employees’ salaries.

In a response to an emailed question, he said, “This is totally incorrect and unfounded. First Bank staff salaries, allowances and bonuses are being fully paid as and when due.”

The spokesperson of Zenith Bank, Mr. Akin Olaniyan, could not be reached on the telephone. Text message and email questions sent to him were not responded to.

The spokesperson, Diamond Bank, Mike Omeife, denied that the bank had cut the salaries of some of its workers.

The Director-General, Nigerian Insurers Association, Mr. Sunday Thomas, said everybody is a marketer in the insurance firms because they need the premium to operate all the departments.

“It will not be out of order for the companies to give employees targets except the target is unrealistic,” he said.

However, economists said the high deposit targets and the attendant fear by bank and insurance workers could be a strategy by the two industries to survive the current economic reality in the country.

A renowned Economist and Managing Director, Cocosheen Nigeria Limited, Ikeja, Lagos State, Mr. Henry Boyo, agreed that such a measure could be a strategy by banks to remain in business.

He said, “Every sector in the country is affected by the economic crisis, not only the banks. For instance, if a company asks you to pick between being sacked and your salary being reduced, I think most people would prefer the latter option. This could be what is happening.”

Another Lagos-based economist, Dr. Babatunde Abrahams, predicts the mass sacking of workers in banks and insurance firms going by the latest development.

He said, “If anyone has been watching economic trends for a while in the country, you will discover that the sacking of workers is inevitable. Banks trade with customers’ deposits, but I can tell you that very few people have money in banks in this harsh economic period.”
http://punchng.com/economic-recession-banks-insurance-firms-slash-workers-salaries/?utm_source=twitterfeed&utm_medium=twitter

This option is better than retrenchment. Chop no bellefull is better than no chop atall. But its not about salaries. Banks are in recession but bank managers are building mansions & skyscrapers around me. How manage? I am not 'bad belle' but I am concerned as a shareholder who gets peanuts as dividend.

The truth about the issues is that the Executive Directors of every bank always live on outrageous lifestyle. Most especially in Unity Bank, they only come to the office and sit down from morning to evening without going out to see their friends who happens to be a business Mogul in order to bring business to the bank. Rather they are expecting you that doesn't have the connections to go and bring business to the bank. Well am not surprised that other bank are just joining the league because we at Unity Bank, our salary has already been slashed by 40% and the Management have stopped paying the staff their Housing Allowance and other allowances. May God Almighty help our nation.

Waiting for Lier Mohamed to debunk this.

july66:
This option is better than retrenchment. Chop no bellefull is better than no chop atall. But its not about salaries. Banks are in recession but bank managers are building mansions & skyscrapers around me. How manage? I am not 'bad belle' but I am concerned as a shareholder who gets peanuts as dividend.

Must u quote the whole body? Haba!

Jk

Seriously,this isn't funny no more,we are kidding and finding whom to blame concerning this present economic woes,men,it is only God that can pull us out of this economic stunt we have found ourselves...#prayforNigeria

It shall be well with Nigeria

Provie:
Personally I tink salary restructuring is far better dan mass retrenchment. Restructuring in such a way dat low earners are not really affected. I'm particular about very high earners. Wen pursued, it is a good way to bridge inflation & ensure stronger middle class.

our leaders are not flexible enough to reason like u do , I wonder if dem go Skool self , this is just a simple economics .. They are stiff in their thinking

debsdan92:
Seriously,this isn't funny no more,we are kidding and finding whom to blame concerning this present economic woes,men,it is only God that can pull us out of this economic stunt we have found ourselves...#prayforNigeria

this one no concern God oo , wetin him give out leaders Brain for , is it not to receive sense

Liars. I work in FirstBank and they have NOT slashed salaries or removed allowances. Stop spreading false rumours. Una Sabi lie.

akinsadeez:
Yet our finance minister said "recession is just a word". Smh!

Don't mind this dramatic country.

This report is totally false....Diamond Bank has not cut salaries of. Its workers.

Hmm

It's well buh I still thank God cos mama has nt reduced the qantity of my EBA despite this hardship. We didn't bargain for this

frenchwine:
One of the advantages of working in the civil service. If them touch my salary, we wee strike. No be me cause the recession, let them reduce their own salaries first

Obviously you are not in tune with the situation in the Nigeria civil service. Osun state has been collecting half salary since july last year and its even so irregular as they re still in April half salary yet they must go to work everyday!

So what is the answer?

Lighthouseman:
Banks would soon go under.
Buhari is to be blamed. The biggest spender used to be government and the largest depositor used to be banks. But with the immediate implementation of the treasury single account suffocated banks with the attendant fines imposed on banks on the name of 'a new sherifat is in town'
The devaluation abi floating of the currency by this government made the banks take huge losses since most of their debts were dominated in dollars and we're given to oil and construction companies. With oil market unstable because of the militants and this government not awarding any major contracts to big time construction firms, the loans are turning to bad debts.
Less money in circulation means people have less to spend and just go to bank not to bank but to transfer to a relative or friend that is hungry on the other side who goes to withdraw immediately he receives alert.... So, how do banks survive?
I have the answer but that's for another day or when asked

The simpler smarter Bank can't do that rather they increased the salary of the staff... that is UNION BANK.

Hmnn

Askmewhy:
That is why I love my Bank Access Bank, instead of reducing, they increase by 10%.

Na so o. The management surprised me big time.

Enrichlee:
Obviously you are not in tune with the situation in the Nigeria civil service. Osun state has been collecting half salary since july last year and its even so irregular as they re still in April half salary yet they must go to work everyday!

Bros I am over attuned to the reality on ground and I must say that we have repeatedly said it, westerners nay other southerners are Lilly livered.
Try owe civil servants for just one month up north and see the reaction from labour. We don't take no shit broh

this is happening worldwide..try to dont concentrate only on nigeria....

recession,recession,recession,recession..as if its something new.


fyi: nigeria has been in recession,since after the biafra war...

Bros share d love na. Wetn be d ansa abeg? Boys dey hung o!

Lighthouseman:

I have the answer but that's for another day or when asked

Truth. Skye bank has been busy sacking innocent staff left, right and centre with flimciest excuse and brand those people criminals.
The level of sacking they melted to Enugu area branches is highly wicked as if they are the ones that put the bank onto stress. All nà arangée downsizing

Worshipers will tell you that Nigerian banks are corrupt. Based on their argument last year that those sacked were products of corruption, we should not expect anything different. They told us then that sacked workers met their fate because of the 'corrupt way' they were employed which the 'full implementation' of the TSA has put a stop to.

Remember they always have ready response to all their failures. They always have a way to explain their failures without taking responsibility.

And to those who would demand for the names of the banks, check them there. Even First Bank considered to be a 'quasi-civil service' job is listed.

mare23ayo:
things will soon get back to normalcy

How old are you? shey you go school at all?

Einl:
Liars. I work in FirstBank and they have NOT slashed salaries or removed allowances. Stop spreading false rumours. Una Sabi lie.

Relax, Saturday Punch will soon hear from First Bank's lawyers if what you are saying is the truth.

basilo101:
Dayo Oketola, Nike Popoola, ‘Nonye Ben-Nwankwo, Fisayo Falodi, Gbenro Adeoye, Tunde Ajaja, and Jesusegun Alagbe

Hit by the current economic recession in the country, most money deposit banks and insurance firms have slashed their workers’ salaries by between 20 and 50 per cent.

Investigations by Saturday PUNCH revealed that Diamond Bank Plc, Heritage Bank Plc, Zenith Bank Plc, First Bank Plc and Wema Bank Plc have reduced their workers’ salaries as of August 31, 2016. This has also been confirmed by management sources and workers in the affected banks.

While Diamond Bank was said to have slashed salaries by 30 per cent, Heritage by 30 per cent, First Bank and Wema Bank workers’ salaries were slashed by 20 per cent each.
It was learnt that the banks tied the decision to cut salaries to workers’ ability to meet deposit targets, which have become unrealistically high in recent time. Hence, workers who failed to meet their targets had their salaries slashed.

Investigations also revealed that some insurance companies have extended the targets of premium generation to their employees.

Before, the marketing departments of the underwriting firms and insurance agents were responsible for generating premium for the companies.

Due to the economic crisis in the country, many insurance firms increased the targets for their marketing departments’ workers with threats of not paying them salaries if they failed to meet it (targets). As such, insurance workers who failed to meet their premium targets, according to industry sources, also had their salaries slashed.

An insurance employee, who spoke to one of our correspondents, said, “Before, it was only the marketers that they used to give targets to. Now, some of us also have targets ranging between N40, 000 and N100, 000 monthly and our promotion and salaries are tied to our performance.”

A Zenith Bank worker, who simply identified herself as Nkem, confirmed the slash in salaries.

Nkem said she resumed work after her annual vacation only to discover that she didn’t get the same salary that she had always received.

Similarly, another Zenith Bank employee, who spoke on condition of anonymity, told one of our correspondents that there was eight per cent cut in their salaries, beginning from August.

The source said the reason given by the bank was that the workers had not been paying the correct tax, hence, the bank had to start the deduction to regularise the tax payable.

On the fear that some workers could be sacked, the source said such fear had always been there, but the current one was beyond description.

He said, “The problem now is that there has not been any promotion since last year, which seems strange.”

An employee of First Bank, who spoke on condition of anonymity, said he had been sleeping and waking up in worry in the past two weeks due to fear of being sacked.

The banker, who just got married in Lagos, said workers had received an email from the bank’s Managing Director about a “new development soon.”

He said, “We have been receiving hints of more lay-offs due to the economic recession in the country, which has deeply affected the banking sector. Some employees lost their jobs two months ago. We also learned that another set of people will be laid off between September and October.”

Saturday PUNCH learnt that Ecobank has yet to slash its workers’ salaries, but there is apprehension among the bank’s employees that their pay might be slashed any moment from now.

One of the bank’s senior members of staff, who preferred to be addressed as Handsome Guy, said it had become a tradition among Nigeria’s banks to be imitating one another’s policies, especially those affecting workers’ welfare.

A worker with First Bank Plc, who simply identified himself as Jimson, confirmed to one of our correspondents on Thursday that most bank workers now go to work with the fear that they could be sacked anytime.

“There is perpetual fear in all banks. Every category of workers in the banks is affected by the economic crisis,” he said.

He, however, noted that some bank workers had been resigning and travelling abroad, especially the United States and Canada, to avoid being sacked.

Jimson said, “One of my colleagues just resigned last month because of the fear of losing his job and travelled to the U.S to seek greener pastures. But those who are not interested in leaving Nigeria have devised many means to survive the harsh economy should their letters of sacking come anytime. They are setting up small scale businesses.

“The most common ones are laundry services and restaurants which require capital outlay of N500, 000.

“The academically-sound ones among them have been moving to private universities to take appointments there. The problem is on the high side now. There is perpetual fear among bank workers that they can be fired at anytime.”

The National Union of Banks, Insurance and Financial Institutions’ Employees confirmed the development in the banks to Saturday PUNCH.

NUBIFIE Secretary General, Mohammad Sheick, said the issue had become a serious concern to the union.

Sheick said, “There is apprehension in the banking sector. Recently, there was mass sacking by banks and the Federal Government directed that those who were sacked during that period should be recalled.

“We have had about two meetings with the Federal Ministry of Labour on the issue and we are hopefully looking at the possibility of the ministry calling us to another meeting so that we can have an understanding on how to respond to the emerging issues like economic recession and other factors that are affecting the operations of banks.

“Even before the economic recession, the banks have always responded to any policy of the government negatively. The first thing that came to the mind of the banks’ management, which the union has always disagreed with, is to lay off workers.

“They (banks) have to think outside the box and objectively. If they want to cut cost or reduce certain expenditure because of certain government’s policy, then the reality is that they should know where they should direct their attention.

“I can volunteer to say that the thing that eats deep into banks profit and loss is nothing other than the kind of lifestyle of the management staff of the banks. For example, the monthly salary of one executive director is more than the salaries of 100 workers. This is apart from other privileges and perks attached to him as an executive director.”

The Head, Corporate Communications, First Bank, Mr. Babatunde Lasaki, denied that the lender cut its employees’ salaries.

In a response to an emailed question, he said, “This is totally incorrect and unfounded. First Bank staff salaries, allowances and bonuses are being fully paid as and when due.”

The spokesperson of Zenith Bank, Mr. Akin Olaniyan, could not be reached on the telephone. Text message and email questions sent to him were not responded to.

The spokesperson, Diamond Bank, Mike Omeife, denied that the bank had cut the salaries of some of its workers.

The Director-General, Nigerian Insurers Association, Mr. Sunday Thomas, said everybody is a marketer in the insurance firms because they need the premium to operate all the departments.

“It will not be out of order for the companies to give employees targets except the target is unrealistic,” he said.

However, economists said the high deposit targets and the attendant fear by bank and insurance workers could be a strategy by the two industries to survive the current economic reality in the country.

A renowned Economist and Managing Director, Cocosheen Nigeria Limited, Ikeja, Lagos State, Mr. Henry Boyo, agreed that such a measure could be a strategy by banks to remain in business.

He said, “Every sector in the country is affected by the economic crisis, not only the banks. For instance, if a company asks you to pick between being sacked and your salary being reduced, I think most people would prefer the latter option. This could be what is happening.”

Another Lagos-based economist, Dr. Babatunde Abrahams, predicts the mass sacking of workers in banks and insurance firms going by the latest development.

He said, “If anyone has been watching economic trends for a while in the country, you will discover that the sacking of workers is inevitable. Banks trade with customers’ deposits, but I can tell you that very few people have money in banks in this harsh economic period.”
http://punchng.com/economic-recession-banks-insurance-firms-slash-workers-salaries/?utm_source=twitterfeed&utm_medium=twitter

There are other smarter ways to sustain profitability while keeping their staff, just that most of them are not open to new initiatives and those involved in diesel supplies just can't let go. The management's of these banks and insurance firms must begin to look at their expense heads, especially diesel costs.

It has been proven globally that lowering heat radiation into buildings reduces as well as downsizes air conditioning equipment and energy costs. It is also a known fact that air conditioning accounts for 40-60% of total energy consumption of most businesses worldwide.

I recall proposing a system to some banks, that will help downsize their diesel costs, by a guaranteed 10% minimum, plus 10 years guaranty and a clause that they could decide not to pay for a pilot project on any of their buildings, should the diesel reduction not be achieved. The proposal was never considered. This is the same system that was deployed by global company Coca Cola, world telecom giant Telstra and others to achieve significant reduction in their energy costs and cut CO2 emissions into the environment.

We are still willing to work with banks, insurance companies, media, telecom firms etc, to significantly slash their diesel costs in place of workers and help them enhance investment returns, the recession nothwithstanding.

We may be contacted via info@procorrsolutions.com or call +234-8039352489 for a presentation and possible pilot scheme on our technology.