Access Bank Plc plans to sack 75 per cent of its staff, the bank Managing Director, Herbert Wigwe said in a leaked video on Thursday.
He also said staff that are retained will have to take pay cuts as lockdown to contain the coronavirus have affected operations of Nigeria’s biggest lender.
Mr Wigwe said he would take a 40 per cent cut on his earnings and he expects all staff who are retained to be affected by the economic implication on the bank.
But those who are going to be impacted are the security officers, cleaners and bank tellers. According to the MD, most of them will be sacked to cushion the present economic reality.
The decision by the bank has sparked an outrage on social media. Many Nigerians have questioned the financial institution’s decision to donate N1 billion to the Nigerian government to combat COVID-19 at the expense of its workers.
The reduction is expected to start from May unless business conditions improve, said the people, who were briefed on the matter during a conference call and asked not to be identified because they’re not authorized to speak publicly.
A spokesman for Lagos-based Access Bank declined to comment.
Access Bank MD. smh. pic.twitter.com/xsBjGRDDPm
— Poju (@pojugreat) April 30, 2020
Nigerian banks are facing the threat of rising bad-debt levels as a crash in oil prices and the risk of a naira devaluation coincide with the Covid-19 pandemic that has shuttered businesses.
Access Bank, which acquired rival Diamond Bank Plc last year, had 6,898 permanent staff at the end of 2019, according to a presentation on its website.
The acquisition partly contributed to a 31% increase in operating expenses. Personnel, recruitment and training costs account for more than a third of overheads after the deal boosted employee numbers and resulted in “wage harmonization” across the businesses.
