A proposed bill seeking to outlaw the use of casual and contract workers in Nigeria’s banking industry has scaled second reading at the House of Representatives, marking a significant step toward reforming labour practices in the financial sector.
The bill, sponsored by Honourable Fuad Laguda, aims to amend the Banks and Other Financial Institutions Act (BOFIA) 2020. If passed into law, it would prohibit banks from engaging casual or contract staff for core operations, while introducing criminal penalties for institutions and officials found violating the provisions.
Presenting the bill, Laguda argued that the widespread use of casual workers in banks has encouraged exploitative employment practices, including low wages, limited job security, and poor working conditions. He noted that despite performing similar duties as permanent staff, many casual workers are denied basic employment benefits and protections.
According to the lawmaker, the proposed legislation is designed to promote decent work standards, protect workers’ rights, and ensure fair treatment across Nigeria’s banking sector. He added that strengthening labour conditions would also improve productivity and professionalism within financial institutions.
However, the bill has sparked debate among stakeholders. Some lawmakers and industry observers have raised concerns about possible job losses if banks respond by downsizing their workforce rather than converting casual roles into permanent positions. Others have questioned how effectively the ban would be enforced, given existing regulatory and compliance challenges.
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The bill has now been referred to the appropriate House committee for further scrutiny and public hearings, where its economic impact, enforcement framework, and implications for employment will be examined before it returns for possible third reading.