ABUJA — The House of Representatives has taken a decisive step toward reforming employment practices in the Nigerian banking sector, moving against the widespread use of casual and contract labour that critics say undercuts workers’ rights, job security and sectoral professionalism. On Thursday, lawmakers approved the second reading of a bill sponsored by Hon. Fuad Kayode Laguda aimed at amending the Banks and Other Financial Institutions Act to address exploitative labour practices, including the over-reliance on casual and informal employment arrangements.
The bill “A Bill for an Act to Amend the Banks and Other Financial Institutions Act, 2020, and for Related Matters” (HB.2309) sailed through its second reading during plenary and was referred to the relevant House committees for further deliberation and stakeholder consultation. Sponsors and supporters argue the legislation will curb systemic casualisation in banks, a practice where long-serving workers are retained on temporary, informal or outsourced contracts without basic job protections or long-term benefits.
Casual labour has become endemic in Nigeria’s financial institutions, with industry analyses indicating that a significant proportion of banking staff serve under temporary or contract terms without the statutory rights and benefits accorded regular employees. Critics maintain that this has created a segmented workforce with limited job security, stunted career progression, and inadequate welfare protections, even as banks report robust profits and growth.
Supporters of the bill say it seeks to rebalance labour relations in the banking sector by compelling institutions to formalise employment, improve working conditions, and ensure compliance with Nigeria’s labour laws. This comes amid broader legislative activism on labour issues across the National Assembly, including recent moves to modernise occupational safety and health laws and other worker protections.
House members backing Laguda’s initiative underscored the need for the banking industry — a critical pillar of Nigeria’s economy to model equitable employment standards, particularly in a sector where casual and contract staffing arrangements have been criticised as exploitative and misaligned with global labour norms. They noted that strengthening job security in banking will not only protect workers but also enhance productivity and institutional stability.
However, the development is likely to prompt robust debate. Some industry stakeholders may argue that banks require flexibility in staffing models to respond to market dynamics, technological changes and cost pressures. Observers also note that any legislative tightening of labour standards must be accompanied by clear implementation frameworks and consultations with employers, labour unions, regulators and civil society to avoid unintended disruption to financial services.
The bill’s passage to committee stage marks a critical juncture in Nigeria’s legislative efforts to align banking employment practices with both national labour laws and international best practices. If enacted, the legislation could significantly reshape employment norms in one of the country’s largest formal sectors and strengthen protections for thousands of Nigerian workers currently engaged under precarious terms.