The Association of Senior Staff of Banks, Insurance and Financial Institutions (ASSBIFI) has expressed deep concern over the growing trend of casualisation within Nigeria’s financial sector, warning that the practice threatens job security, employee welfare, and the stability of the nation’s economy.
Speaking at the annual conference of the Labour Correspondents Association of Nigeria in Abuja, ASSBIFI’s National President, Olusoji Oluwole, revealed that an estimated 60 percent of the operational workforce in Nigerian banks are now contract staff.
Presenting a paper titled “Casualisation in Banking and Financial Institutions,” Oluwole said the surge in temporary employment has led to widespread insecurity among workers and reduced overall productivity in the industry.
“The employee feels a sense of indignity and insecurity, and their useful years are reduced if they spend too long as contract workers. This situation can cause psychological and health strain, leading to depression,” he warned.
Oluwole also highlighted broader risks posed by the trend, noting that excessive reliance on casual labour exposes financial institutions to operational vulnerabilities, fraud, espionage, and loss of critical skills.
To curb the practice, he urged regulators to enforce stricter compliance with employment standards, introduce career development frameworks for contract workers, and review the Labour Act to close existing loopholes.
He commended the Ministry of Labour and Employment for its recent interventions and acknowledged employers who have begun implementing career paths for temporary staff.
Casualisation—where workers are employed on short-term or non-permanent contracts—has long been a contentious issue in Nigeria’s banking industry. Studies show that the system contributes to low employee morale, wage inequality, and poor job satisfaction, often leading to higher turnover rates and reduced commitment.
The Nigeria Deposit Insurance Corporation (NDIC) has also cautioned that casualisation can heighten the risk of fraud and security breaches in financial institutions.
Labour advocates, including former ASSBIFI President Oyinkansola Olasanoye, have repeatedly called for stronger regulations to protect casual workers’ rights and to establish clear career pathways within the sector.
As the debate continues, stakeholders remain divided—while some argue that flexible staffing models are necessary for business competitiveness, others insist that unchecked casualisation amounts to exploitation and undermines the long-term stability of Nigeria’s financial workforce.
