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N25bn Capital Base Will Not Endanger Jobs - NLC By Chris Nwachuku Nigeria Labour Congress (NLC) said it does not expect major job losses in the banking sector as a result of the directive by Central Bank of Nigeria to all banks to shore up their minimum capital base to N25 billion by December 2004. NLC said that its position was anchored on the fact that most of the banks will meet the directive and have greater network with a large number of employees. Justifying the support of the workers' organisation for the CBN reforms, the president of the Congress, Adams Oshiomhole, stated that the report of a likelihood of 35,000 workers losing jobs was untrue and is not a reflection of events in the sector. "It is not true that 35,000 workers will lose their jobs as some have been speculating. The banks that may not meet the requirement are those that operate in one room and have very few staff. The major ones with large workforces and networks will survive," he said. According to the labour president, NLC remains convinced of the position that the reform will strengthen the operations in the banking sector and by extension the economy. He stated that what the nation needed were strong financial institutions with solid capital bases to perform the core functions of banks the labour market will benefit from the huge financial resources at the disposal of the survived banks as in the long run. NLC had endorsed the CBN reforms, which it noted would make banks more healthy and vibrant. It said a bank recapitalised to the tune of N25 billion has enough resources to guarantee depositors' confidence and protect investment. The workers' body however cautioned the management of CBN to ensure proper supervision to avoid any lapses inherent in the implementation. "One person or one family ownership of banks needs to be discouraged as the nation's experience has shown that such narrow ownership bases make it easier for banks to be abused or mismanaged, resulting in failures and endangerment of depositors' fund." Oshiomhole argued that the policy was necessary because real banking culture had been compromised on the altar of speculative activities, trading, and foreign exchange round tripping, all of which are injurious to the economy. Who Are We ? | About THISDAYOnLine.com | THISDAY People | Contact Us © Copyright 2000 Leaders & Company Limited

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