Senator Adams Oshiomhole has accused banks of exploiting workers by keeping the majority of their staff on short-term contracts, denying them job security and basic benefits.

Oshiomhole, who currently represents Edo North, made the remarks on ARISE News television on Friday, condemning the practice as immoral and urging urgent reforms in the sector.

“It shocks me that as we speak, about 60 per cent or more of bank employees are contract staff,” he said.

“They dress as though they are bankers, yet when they are thrown out, they have no gratuity, no security. They are not direct employees of the banks. These practices must be stopped.”

The senator alleged that banks had created employment agencies to hire and deploy staff at lower wages, bypassing direct obligations and labour protections. He likened the arrangements to modern exploitation, saying they undermine workers’ rights while boosting corporate profits.

His comments come amid long-standing concerns over the widespread outsourcing of core banking roles such as tellers and customer service officers.

A 2023 report by the Chartered Institute of Bankers of Nigeria estimated that contract staff make up approximately 65 per cent of the sector’s workforce, often earning less than half the salaries of permanent employees and lacking access to pensions, health insurance, or housing allowances.

Labour unions argue the system encourages high stress levels, unethical sales practices and rising fraud risks, as flagged by the Central Bank of Nigeria.

The Labour Act mandates equal pay for equal work, but weak enforcement has allowed outsourcing firms to exploit loopholes with minimal oversight.

Unions, including the National Union of Banks, Insurance and Financial Institutions Employees (NUBIFIE), have called for reforms to guarantee permanent status after two to three years of service.

The Nigeria Labour Congress previously petitioned parliament to tighten outsourcing rules, while the International Labour Organisation has urged Nigeria to align with international decent work standards.

In 2022, unions warned of possible nationwide strikes if reforms were not implemented, reflecting ongoing tensions over conditions in Nigeria’s financial sector. (The Guardian)