NDIC Slam Banks Over Recruitment Of Contract Staff, Deposit Targets For Employees


The Nigeria Deposit Insurance Corporation (NDIC) has severely reprimanded Deposit Money Banks (DMBs) in the country over the unwholesome practice of engaging contract or outsourced staff in the industry. The Managing Director of the corporation, Alh. Umaru Ibrahim, told Council Members of the Chartered Institute of Bankers of Nigeria (CIBN) in his office in Abuja, that the practice was detrimental to the overall health and soundness of banks.

A statement by NDIC’s head of Corporate Communications, Mr. Haddi Birchi, yesterday quoted the MD as saying that bank examination reports had indicated that the high incidences of fraud and forgeries in the banking system had been linked to outsourced or contract staff.

“In as much as regulators appreciated the necessity for banks to cut costs, it is incumbent on all stakeholders to fashion out capacity building and other strategies to motivate all employees to contribute positively rather than engaging in criminal acts that impact adversely on the entire banking system,” Ibrahim said.

The NDIC CEO also expressed concern about the plight of female employees in the banking industry. He noted that banks often engaged female employees and set for them very high targets on deposit mobilisation and other asset creation ventures, which put undue pressure on them.

Although some improvement had been recorded with regards to the situation, but Ibrahim noted that there was still need to provide a more conducive working environment in order to attract and retain a talented female workforce in the sector.

In his response, the President of the Institute, Otunba (Mrs) Debola Osibogun admitted that over 75 percent of fraud cases in the sector had been traced to outsourced bank staff who were neither professionals nor members of the CIBN. She regretted that the Institute had no control over the banks but disclosed that a Committee of the Institute was already working with heads of operations of banks on the challenges being posed by the outsourced staff and would soon submit its report to the Central Bank of Nigeria (CBN) for consideration.