House of Representatives moves to ban casual, contract staffing in banks
Story by Mercy Adaje
A bill aimed at regulating employment practices in Nigerian banks has passed its second reading in the House of Representatives.
The proposed legislation, sponsored by Fuad Laguda, an All Progressives Congress (APC) lawmaker representing Surulere I Federal Constituency in Lagos, seeks to amend the Banks and Other Financial Institutions Act (BOFIA) 2020. The bill proposes to prohibit, criminalise, and impose penalties on banks that employ casual or contract staff.
While leading the debate during Thursday’s plenary, Laguda explained that the bill is designed to eliminate what he described as exploitative and oppressive labour practices affecting millions of Nigerians working in the banking sector. He noted that existing laws, including the Labour Act of 2004 and the Employees’ Compensation Act of 2010, fail to adequately protect the welfare of casual and contract workers.
Citing a 2023 report by the Chartered Institute of Bankers of Nigeria (CIBN), Laguda stated that banks rely heavily on casual and contract workers to cut operational costs. According to him, this practice enables banks to avoid obligations such as pension contributions, minimum wage compliance, health insurance, promotions, bonuses, study grants, and severance benefits.
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He added that casual and contract workers make up approximately 65 percent of the banking workforce, stressing that the bill seeks to promote fairness and equal treatment for all workers in the sector.
The lawmaker further argued that many banks violate Section 7(1) of the Labour Act, which stipulates that employees should not be engaged for more than three months without formal employment status.
Laguda urged lawmakers to support the bill, noting that it aligns with concerns previously raised by Central Bank of Nigeria (CBN) Governor, Olayemi Cardoso, who has spoken about the poor working conditions faced by casual and contract staff in Nigerian banks.
He also said the widespread use of non-permanent staff allows banks to evade legal responsibilities, exposing workers to systemic inequality, emotional abuse, and mental health challenges.
The bill received unanimous support when the Deputy Speaker, Benjamin Kalu, called for a voice vote.
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