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“Stop Access Bank Brutality! More Than 2,000 Sacked! Access, Pay Us Our Entitlements!” – Laid-off Access Bank Staff Protest

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Some Access Bank staff who were laid off protest at the bank’s head office in Victoria Island, Lagos, on Wednesday.

The protest was against the alleged termination of contracts and non-payment of entitlements. The laid-off staff made know their agitations through their various placards.

Some of the placards read, “Stop Access Bank brutality. More than 2,000 sacked”, “Access, pay us our entitlements”, “What does the future hold for support staff?”, “Stop enslaving Nigerians in their country”.

The workers accused Access bank of terminating more than 2,000 workers without paying them their entitlements.

It should be recalled that the bank laid off some staff during the heat of COVID-19 in April before the Central Bank of Nigeria intervened and halt the process following a nationwide outcry.

However, some of the laid of staff explained to the media that the trouble started on April 31, 2020 when the bank laid off some of their staff due to the global health pandemic.

One of the laid of staff, (name withheld) explained that though Access Bank obeyed CBN, recalled the staff and continued to pay their salaries, they requested them to stay away from the office.

However, the situation changed on November 30, 2020, when some staff were served termination letters through their various outsourcing firms.

Mr. Akintayo Akinyemi one of the protesters said that Access Bank is in dialogue with the National Union of Banks Insurance and Financial Institution Employees.

He said, “Now that they said they don’t want us anymore, we’re entitled to gratuities. If they are saying we should go, then they should pay our entitlements, and that’s what we’re fighting for.

“The bank already scheduled a meeting with our union for December 11. They shifted the meeting to that time because of what they planned to do.

“We want them to pay our entitlements; they should pay us off so that we can do something with our lives. I’m in my mid-thirties and I have been applying for jobs since then, but they have been turning me down because of my age. I cannot get a valid job anymore. I have put about 10 years into the system and I was laid off just like that”.

Another laid-off staff, Solomon Oropo, said that they were paid N11,500 by the bank’s outsourcing firms for terminating their appointments.

He said, “Our salaries were being paid till November 30 when we received letters that our services were no longer needed and after that, they paid us N11,500 for terminating the contracts. So, what they’re paying as gratuity is N11,500 and that was what led to this protest.

“Our union had been having meetings with the bank and the bank denied sacking us. There are staffs that have been working for 20 years and below and many of us are above 40 with family and they are paying us N11,500 in lieu of notification and that’s all. We see it as dubious and uncalled for and we say no to it. They cannot use our youthful age and ask us to go home with N11,500”.

Mr Olatunji Abubakar, another protester, accused Access bank of demoting some of the staff after merging with Diamond Bank, said, “when Access Bank took over from Diamond Bank, all the office assistants working under Diamond Bank were demoted to security guards on the grounds that they don’t have office assistants in Access Bank and our salaries were pushed to different security firms.

“We went to the security firms for documentations and we were not given any offer letters until when we were disengaged last month without any benefit. I worked with Diamond Bank for 10 years before we came to Access Bank. This has affected me in many ways because I don’t know where to go or start from”.

However, in all this Access bank denied laying off its staff and claimed the termination of appointment was done by their outsourcing firms.

Abdul Imoyo, Access bank’s Head of Media Relations, explained that the protest was an appeal to the bank to intervene in the decision of the outsourcing firms.

He said, “It was not Access Bank that sacked them. The protest was about them calling on Access Bank to intervene in the termination of their appointments with their employers. It is about their relationship with their employers and because they work for Access Bank, they’re asking Access Bank to intervene and we have called their employers.

“There’s an ongoing process to get this resolved. They are not happy with what their employers did and they escalated their grievances beyond their employers. Their employers said they were paid based on their different levels of engagements and terms of the agreements.

“We’re going to engage their employers and see how we can manage their dispute. We need to investigate what happened between them and their employers and resolve all issues.

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Loans

Akinwumi Adesina Calls for Debt Transparency to Safeguard African Economic Growth

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Akinwumi Adesina

Amidst the backdrop of mounting concerns over Africa’s ballooning external debt, Akinwumi Adesina, the President of the African Development Bank (AfDB), has emphatically called for greater debt transparency to protect the continent’s economic growth trajectory.

In his address at the Semafor Africa Summit, held alongside the International Monetary Fund and World Bank 2024 Spring Meetings, Adesina highlighted the detrimental impact of non-transparent resource-backed loans on African economies.

He stressed that such loans not only complicate debt resolution but also jeopardize countries’ future growth prospects.

Adesina explained the urgent need for accountability and transparency in debt management, citing the continent’s debt burden of $824 billion as of 2021.

With countries dedicating a significant portion of their GDP to servicing these obligations, Adesina warned that the current trajectory could hinder Africa’s development efforts.

One of the key concerns raised by Adesina was the shift from concessional financing to more expensive and short-term commercial debt, particularly Eurobonds, which now constitute a substantial portion of Africa’s total debt.

He criticized the prevailing ‘Africa premium’ that raises borrowing costs for African countries despite their lower default rates compared to other regions.

Adesina called for a paradigm shift in the perception of risk associated with African investments, advocating for a more nuanced approach that reflects the continent’s economic potential.

He stated the importance of an orderly and predictable debt resolution framework, called for the expedited implementation of the G20 Common Framework.

The AfDB President also outlined various initiatives and instruments employed by the bank to mitigate risks and attract institutional investors, including partial credit guarantees and synthetic securitization.

He expressed optimism about Africa’s renewable energy sector and highlighted the Africa Investment Forum as a catalyst for large-scale investments in critical sectors.

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Banking Sector

UBA, Access Holdings, and FBN Holdings Lead Nigerian Banks in Electronic Banking Revenue

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United Bank for Africa (UBA) Plc, Access Holdings Plc, and FBN Holdings Plc have emerged as frontrunners in electronic banking revenue among the country’s top financial institutions.

Data revealed that these banks led the pack in income from electronic banking services throughout the 2023 fiscal year.

UBA reported the highest electronic banking income of  N125.5 billion in 2023, up from N78.9 billion recorded in the previous year.

Similarly, Access Holdings grew electronic banking revenue from N59.6 billion in the previous year to N101.6 billion in the year under review.

FBN Holdings also experienced an increase in electronic banking revenue from N55 billion in 2022 to N66 billion.

The rise in electronic banking revenue underscores the pivotal role played by these banks in facilitating digital financial transactions across Nigeria.

As the nation embraces digitalization and transitions towards cashless transactions, these banks have capitalized on the growing demand for electronic banking services.

Tesleemah Lateef, a bank analyst at Cordros Securities Limited, attributed the increase in electronic banking income to the surge in online transactions driven by the cashless policy implemented in the first quarter of 2023.

The policy incentivized individuals and businesses to conduct more transactions through digital channels, resulting in a substantial uptick in electronic banking revenue.

Furthermore, the combined revenue from electronic banking among the top 10 Nigerian banks surged to N427 billion from N309 billion, reflecting the industry’s robust growth trajectory in digital financial services.

The impressive performance of UBA, Access Holdings, and FBN Holdings underscores their strategic focus on leveraging technology to enhance customer experience and drive financial inclusion.

By investing in digital payment infrastructure and promoting digital payments among their customers, these banks have cemented their position as industry leaders in the rapidly evolving landscape of electronic banking in Nigeria.

As the Central Bank of Nigeria continues to promote digital payments and reduce the country’s dependence on cash, banks are poised to further capitalize on the opportunities presented by the digital economy.

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Loans

Nigeria’s $2.25 Billion Loan Request to Receive Final Approval from World Bank in June

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Nigeria’s $2.25 billion loan request is expected to receive final approval from the World Bank in June.

The loan, consisting of $1.5 billion in Development Policy Financing and $750 million in Programme-for-Results Financing, aims to bolster Nigeria’s developmental efforts.

Finance Minister Wale Edun hailed the loan as a “free lunch,” highlighting its favorable terms, including a 40-year term, 10 years of moratorium, and a 1% interest rate.

Edun highlighted the loan’s quasi-grant nature, providing substantial financial support to Nigeria’s economic endeavors.

While the loan request awaits formal approval in June, Edun revealed that the World Bank’s board of directors had already greenlit the credit, currently undergoing processing.

The loan signifies a vote of confidence in Nigeria’s economic resilience and strategic response to global challenges, as showcased during the recent Spring Meetings.

Nigeria’s delegation, led by Edun, underscored the nation’s commitment to addressing economic obstacles and leveraging international partnerships for sustainable development.

With the impending approval of the $2.25 billion loan, Nigeria looks poised to embark on transformative initiatives, buoyed by crucial financial backing from the World Bank.

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