The banking sector has not been spared as companies restructure to conform to the current standard, with the number of workers in the industry falling by 8.3% in December 2019 relative to December 2019.
According to the National Bureau of Statistics (NBS) Selected Banking Sector Report, the number of banking employees fell by 8,584 in the fourth quarter of 2020, to 95,026 as of December 31, 2020, compared to 103,610 in 2019.
The COVID-19 pandemic had a significant effect on bank activities, with many branches closing to limit contact and many of the affected employees being temporary employees. In the midst of the pandemic, the Central Bank of Nigeria (CBN) issued a statement.
The COVID-19 pandemic had a significant effect on bank activities, with many branches closing to limit contact and many of the affected employees being temporary employees. The Central Bank of Nigeria (CBN) had advised banks not to lay off any workers without its permission during the pandemic.
According to NBS statistics, contract employees made up the majority of those relieved of their duties last year, as the number of executive employees grew dramatically.
A total of 5,552 contract employees were laid off during the year, bringing the total number of contract employees down by 12.2% from 45,350 to 39,798 at the end of December last year, while the number of junior employees fell by 5.78%, or 2,306, from 39,896 to 37,590.
Similarly, the number of senior employees fell by 4.39 percent, or 1,799 people, from 18,180 to 17,381.
Over the course of the year, the number of executive employees increased by 39.67%. Compared to 184 executive staff in December 2019, the industry’s executive directors rose to 257 at the end of last year.
Meanwhile, as of Q4 2020, the bank’s gross credit allocation stood at N20.37 trillion. The banking industry gave the most credit to the private sector to the oil and gas and manufacturing industries.
A credit allocation of N3.93 trillion was given to the construction industry, while a credit allocation of N3.19 trillion was given to the manufacturing sector.
The industry’s gross non-performing loans totaled N1.233 trillion, accounting for 6.02 percent of total loans. The percentage of non-performing loans had decreased from 6.06 percent at the end of 2019.
In Q4 2020, data on Electronic Payment Channels in the Nigeria Banking Sector showed a combined number of 3.464 billion transactions worth N356.47 trillion. The number of transactions registered was dominated by online transfers.
According to NBS numbers, online payment transactions worth N120.27 trillion with a volume of 2.227 billion were registered in Q4 2020.