Reps Move to Criminalise Hiring of Casual, Contract Staff in Nigerian Banks

• The House of Representatives has passed for second reading a bill seeking to prohibit and penalise the use of casual and contract workers by Nigerian banks, citing widespread exploitation in the sector.

A bill seeking to regulate the employment of staff in Nigerian banks has passed second reading at the House of Representatives.

The proposed legislation, sponsored by Fuad Laguda, an All Progressives Congress (APC) lawmaker representing Surulere I Federal Constituency of Lagos State, seeks to amend the Banks and Other Financial Institutions Act (BOFIA) 2020 to prohibit, criminalise, and penalise the engagement of casual or contract staff by banks.

Leading the debate during Thursday’s plenary, Laguda said the bill aims to completely curb the use of casual and contract employment in the banking sector in order to eliminate what he described as exploitative and oppressive practices affecting millions of Nigerian workers.

He argued that existing labour laws, including the Labour Act 2004 and the Employees’ Compensation Act (ECA) 2010, do not adequately protect the welfare of casual and contract staff.

Citing a 2023 report by the Chartered Institute of Bankers of Nigeria (CIBN), the lawmaker said many banks rely heavily on casual and contract workers to cut operational costs associated with pensions, minimum wages, health insurance, promotions, bonuses, study grants, and severance benefits.

According to Laguda, casual and contract workers account for about 65 percent of the total workforce in Nigerian banks, stressing that the bill seeks to ensure fair and equitable treatment for all workers in the sector.

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He further noted that the proposed law would address what he called the “heinous practices” of banks that violate Section 7(1) of the Labour Act 2004, which prohibits employing workers for more than three months without formal recognition of their employment.

Laguda urged his colleagues to support the bill, noting that it aligns with concerns previously raised by the Governor of the Central Bank of Nigeria (CBN), Mr Olayemi Cardoso, who has warned that casual and contract staff in Nigerian banks are often subjected to poor working conditions.

He added that banks deliberately engage casual and contract workers to avoid legal and contractual obligations, exposing them to systemic inequality, emotional abuse, and mental health challenges.

The bill received unanimous support from lawmakers after the Deputy Speaker, Benjamin Kalu, called for a voice vote.