Economist commends CBN’s stoppage of lay off
By Anthony Areh
An economist, Dr Boniface Chizea, has commended the Central Bank of Nigeria (CBN) for the decision reached with the Bankers Committee that layoff of staff in the banking sector should not be done in view of COVID-19.
The decision to put on hold, layoff of bank staff, came up after a special meeting of the Bankers’ Committee convened on May 2.
The meeting was to further review the implications of the COVID-19 pandemic on the Nigerian banking industry.
A statement by Mr Issac Okorafor, CBN Director, Corporate Communications, had said the committee deliberated on the issue of the operating costs of banks in view of the disruptions emanating from the global economic difficulties.
In order to help minimize and mitigate the negative impact of the COVID- 19 pandemic on families and livelihoods, it was decided that no bank in Nigeria shall retrench or lay-off any staff of any cadre (including full-time and part-time).
The committee also decided that, to give effect to the measure, the express approval of the CBN shall be required in the event that it becomes absolutely necessary to lay-off any such staff.
Chizea, the Managing Director of BIC Consultancy Services, said in a statement,
commended the CBN for its intervention and said there must be a
deliberate change in mind-set going forward by managements, whereby they will exhaust all available survival options before resorting to retrenchment.
” Strategies like pay cuts, attractive terminal benefits for those close to retirement to encourage them to exercise the option of voluntary early retirement or even reduced work hours, working from home which has gained considerable traction under this pandemic should first be explored before resort is had to retrenchment,” he said.
Chizea urged corporate bodies to arise to their responsibilities of giving practical vent to the often heard statement to the effect that, “Our Staff is our greatest Asset”.