There has been an upsurge in the bank staff strength in the last five years and it is rising by double digits.
Recent figures from Nigerian Bureau of Statistics show that Nigerian lenders now have a total of 46,235 contract staff members as at Q1 2019 which ended 30th March. This compares to 45,238 in Q4 2018 and 32,013 in the first quarter of 2018.
The figures revealed that contract staff in the nation’s banks has grew 44% year on year as more lenders increasingly rely on outsourcing for core banking operations.
Out of the entire banking workforce, a meagre 0.18percent are top executive staff as at Q1 2019.
Total bank employees rose to 105,017 a 0.33% rise compared to the immediate last quarter. This compares to 17% year on year employee hire for the banking sector. There was a 6.36% uptick in senior staff hires.
Bayo Oshin a Lagos-based banker said banks are increasingly relying on contract staff to perform daily operations. From a mere 20,237 in 2017 contract staff has more than doubled both as a percentage of total staff and in absolute terms.
“With improved technology across core banking operations, banks will continue to increase its pool of contract staff. The implications should be positive for banks who are seeking improved profitability,” he said.
According to Oshin, more fresh Nigerian graduates face a bleak future especially those seeking a future in banking.
“You will need to be exceptionally good to get a non-contract job” he added.
This also has negative consequences on youth migration out of Nigerian. Hundreds of thousands of Nigerians are seeking a better life in countries like Canada and the United States as quality jobs become fewer.
Nigerian tax authorities should also be worried about flat tax revenues particularly from the banking sector.
The banking sector represents a huge chunk of employees in states across the country. With 44% of staff being contract, tax receipts are expected to be thinner.