Labor Leaders Warn of Job Losses Amid Banking Reforms

Organized labor in Nigeria has raised concerns regarding potential job losses resulting from the recapitalisation of the banking and insurance sectors. Labour leaders warned that while recapitalisation is essential for strengthening financial institutions, it could lead to restructuring, automation, and cost-cutting measures that threaten thousands of jobs.

The warning was issued during the 2026 World Decent Work Day in Lagos, where representatives from the Association of Senior Staff Association of Banks, Insurance and Financial Institutions (ASSBIFI), Precision, Electrical and Related Equipment Senior Staff Association (PERESSA), and the Federal Ministry of Labour and Employment emphasized the need for adequate worker protections. Muhammad Maigari Dingyadi, representing the Minister of Labour and Employment, highlighted that young workers are particularly vulnerable to the changes driven by technological advancements in the sector.

He stressed that reforms should not compromise workers' rights, job security, fair wages, and career development.