Nigeria: CBN, banks working to curb mass sack

*Central Bank of Nigeria headquarters.

*Central Bank of Nigeria headquarters.

10 June 2016, Abuja — The Central Bank of Nigeria (CBN) through its Bankers’ Committee said on Thursday it was working hard to minimise the rate of mass sacking in banks within the shortest time possible.

The Managing Director, Standard Chartered Bank, Bola Adesola, said the mass sacking in the sector was part of the issues discussed during committee’s meeting.

She said while the banks understood the economic situation in the country, there would always be reasons for workers to be relieved of their jobs.

“On the recent news item on retrenchment, we also discussed it and obviously banks understand the implications of people not being in employment. We know what the situation is like in the country.

“Thus, we are looking at ways of ensuring that we minimise many exits from our institutions. There will always be an exit as you know because there is fraud and so on and so forth.

“So we have noted the market sentiments and I am sure that going forward it will be different,” she said.

Mrs. Adesola said the framework for a National Collateral Registry was almost ready and when released, it would facilitate the easy access of loans by bank customers.

Based on the guidelines, she said those seeking loans from banks could use movable assets such as vehicles, fridges, and other home appliances as collaterals.

“You are all aware that the Central Bank of Nigeria is developing a National Collateral Registry. I am pleased to say that they have put the framework in place and the technology.

“They have begun to engage stakeholders and we should expect a role out of the collateral registry being available to banks to register movable assets that they lend against. A policy statement will be issued shortly.

And we expect that will make more robust the banks’ credit process in lending to customers, against the movable asset,” she said.

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