FG Lacks Power To Direct Banks To Suspend Workers’ Sack – NECA

Nigerian-Banks-399x336The Nigeria Employers’ Consultative Association, NECA, has said the Federal Government was not in a position to issue the directive to banks not to disengage workers.
The association particularly faulted the Minister of Labour and Employment, Senator Chris Ngige, who gave the directive last week.
The minister last Friday directed a suspension of the mass disengagement of workers in Banks, Insurance and Financial institutions in the country pending the outcome of conciliatory meetings in the industry.
Mr. Ngige was reacting to the sack of over 1,200 workers in two banks last week amid an economic crisis.
But NECA, through its Director General, Olusegun Oshinowo, said over the weekend that it was not in the place of Ngige or the Federal Government to issue such order.
It, therefore, told banks, financial institutions and other employers of labour to ignore the directive.
According to Oshinowo, there was no part of Nigeria’s laws that empowered the minister to issue such a directive, adding it was only populist, but uninformed.
He said: “The minister seems not to have shown understanding of the fundamentals of industrial relations and labour laws in Nigeria and thus has acted ultra vires.
“Employers have rights, which include the right to hire and fire, within the rules governing such employment contract and are employers’ prerogatives, which are not subject to ministerial directives.
“Where an employer has found it necessary to carry out retrenchment, it would respect the laws of the land and the laid down procedures for redundancy.
“Employers’ expectation from the Minister of labour and employment is that he will work hand in hand with other government ministries in the establishment of the desired enabling environment to ensure business sustainability, competitiveness and job creation.
“The Ministry of Labour and Employment is expected to respect the rights and interests of employers and workers alike on issues that relate to labour and industrial relations.
“For a long time, employers have been advocating that the Ministry should be headed by a technocrat in order to avoid the kind of disposition being displayed by the Minister, which tends towards populism and partisanship rather than professionalism.
“No employer would take pleasure in declaring redundant employees it had invested significant resources in developing over the years.
“Usually, redundancy exercise is foisted on employers on account of an unhealthy economy and the dynamics of the business, which often demands staff rationalisation”.


  1. Beautiful write up .I will appreciate receiving more write ups related to resolving problems of Nigeria bank employees low career success.Thanks.Adeshina Ojo.


Please enter your comment!
Please enter your name here