The Association of Senior Staff of Banks, Insurance and Financial Institutions (ASSBIFI) has expressed alarm over the growing reliance on casual workers in Nigeria’s financial sector, warning that the trend threatens job security, employee welfare, and the nation’s overall economic stability.
Speaking at the annual conference of the Labour Correspondents Association of Nigeria in Abuja, ASSBIFI National President Olusoji Oluwole revealed that about 60 percent of operational staff in Nigerian banks are now employed as contract workers.
In his presentation titled “Casualisation in Banking and Financial Institutions,” Oluwole said the situation has created deep structural problems across the sector, including wage inequality, lack of benefits, limited career growth, and rising insecurity among employees.
“It is reported today that about 60 percent of the operational workforce in banks are contract staff.
Employees feel a sense of indignity and insecurity, and their useful years are reduced if they spend too much time as contract workers,” he said.
“This can lead to psychological and health strain, which may result in depression.”
Oluwole cautioned that the increasing dependence on casual labour is not only harmful to workers but also poses serious operational and reputational risks to financial institutions and the economy. He listed fraud, loss of institutional knowledge, espionage, and skill underutilisation as potential consequences.
To reverse the trend, the ASSBIFI president called for stronger enforcement of labour regulations, implementation of structured career paths for contract staff, and a comprehensive review of the Labour Act to align with modern employment realities.
He praised the Federal Ministry of Labour and Employment for its recent initiatives and commended employers that have started developing career progression plans for contract employees.
Casualisation has long been criticised in Nigeria’s banking industry for creating a class of workers who face low pay, job insecurity, and limited advancement opportunities. Studies have shown that the practice undermines employee motivation and commitment, while increasing stress levels and workplace dissatisfaction.
The Nigeria Deposit Insurance Corporation (NDIC) has also cautioned that excessive casualisation could heighten fraud and security risks across the financial system.
Labour leaders and rights advocates have repeatedly urged the government to regulate contract employment and safeguard workers’ rights. Former ASSBIFI President Oyinkansola Olasanoye previously proposed the introduction of a formalised career pathway for casual workers under the supervision of the Ministry of Labour.
Despite years of debate, casualisation remains a contentious issue in Nigeria’s banking sector — with some institutions defending it as a cost-control measure, while critics argue it represents a form of systemic exploitation that weakens productivity and undermines economic resilience.
