Banking Reform in Nigeria -Implication for Employees
BANKING SECTOR REFORMS –Implications for Employees
By: Mr. Feyi Oluwaremi (B.Sc, MBA, ACA)
ABSTRACT
Recent reforms carried out by Sanusi Lamido Sanusi, governor of the Central Bank of Nigeria (CBN), in the banking industry appear desirable. The CBN aims at ensuring the stability and soundness of Nigeria’s banking industry within the shortest possible time. However, the unintended negative effects of these present reforms of the banking sector on national economy are awful. The CBN Governor swept away chief executives of five commercial banks in Nigeria in one fell swoop. The decision took many Nigerians by surprise. At the same time, it drew diverse reactions depending on which side one stands. Whereas some people applauded the action as belated but necessary to bring sanity to the Nigerian banking sector, others chastised the apex bank boss for taking a decision that would turn round to hurt not only the banks, but the entire Nigerian economy. Sadly, in spite of the apparent lofty intentions of the reputable risk manager, there are indications that unintended negative effects of the CBN action have begun to take their toll on the banks, the real sector, Nigerians and the entire economy.
From the empirical observation, employees of the various sectors of the economy are bearing the brunt of these reforms going on. This is evident by: high level of retrenchment, salary cuts, daily living in fear of losing one’s job, employee coercion for high performance in the face of hostile and polluted marketing environment, harassment and intimidation from the employers as a result of policy confusion, etc.
In the light of this, this paper reviews the Change Strategies which must be put in place, largely by the employees, towards building up a high corporate culture ( -employees behaviours, attitudes, capabilities and commitment ) if they want to maintain their relevance and keep their jobs in the present reality.
The direction of my discussion will
By: Mr. Feyi Oluwaremi (B.Sc, MBA, ACA)
ABSTRACT
Recent reforms carried out by Sanusi Lamido Sanusi, governor of the Central Bank of Nigeria (CBN), in the banking industry appear desirable. The CBN aims at ensuring the stability and soundness of Nigeria’s banking industry within the shortest possible time. However, the unintended negative effects of these present reforms of the banking sector on national economy are awful. The CBN Governor swept away chief executives of five commercial banks in Nigeria in one fell swoop. The decision took many Nigerians by surprise. At the same time, it drew diverse reactions depending on which side one stands. Whereas some people applauded the action as belated but necessary to bring sanity to the Nigerian banking sector, others chastised the apex bank boss for taking a decision that would turn round to hurt not only the banks, but the entire Nigerian economy. Sadly, in spite of the apparent lofty intentions of the reputable risk manager, there are indications that unintended negative effects of the CBN action have begun to take their toll on the banks, the real sector, Nigerians and the entire economy.
From the empirical observation, employees of the various sectors of the economy are bearing the brunt of these reforms going on. This is evident by: high level of retrenchment, salary cuts, daily living in fear of losing one’s job, employee coercion for high performance in the face of hostile and polluted marketing environment, harassment and intimidation from the employers as a result of policy confusion, etc.
In the light of this, this paper reviews the Change Strategies which must be put in place, largely by the employees, towards building up a high corporate culture ( -employees behaviours, attitudes, capabilities and commitment ) if they want to maintain their relevance and keep their jobs in the present reality.
The direction of my discussion will