Treasury Single Account: Zenith bank sacks 1,200 workers
Zenith bank plc, one of the biggest banks in Nigeria has announced the sack of
more than 1,000 workers including eight General Managers and 40 Assistant
General Managers sources close to the company have revealed. The move was
said to be part of the bank’s effort to drastically cut down on its top
heavy management structure.
President Buhari’s order for the implementation of a Treasury Single Account
(TSA) with the Central Bank of Nigeria (CBN) has been fingered as a
likely cause of this layoffs with experts predicting we will see more of this
in the near future.
Many bankers and economic analysts believe that the policy will not go down
well with the banks because majority of them rely on the public sector funds
for their daily transactions.
For instance, the about N3 trillion public sector funds in the system will now leave the banking system to CBN. This, experts, highlighted will surely create liquidity issues in the banks
Before now, the banks mostly depend on the public sector fund. The last
Monetary Policy Committee pegged the Cash Reserve Ratio (CRR) of public funds
at 31 percent. Dr Kelekume Ikechukwu, an economist with Pan Atlantic
University, Lagos said the implication for the commercial banks would be grave
“Most commercial banks will go down. The ones that will survive are those
whose businesses are not based on government funds,” he said, adding, “It is
huge, the ones that will be affected are definitely going to downsize.”
However, the source that revealed this mass retrenchment in the bank was
quick to deny the demise of the bank saying “One thing that is clear is
that Zenith Bank is not under any threat,”
“With the current crisis in the banking industry and the country at large, it
is incumbent on any bank that wants to growth to bend backwards to
re-strategize and restructure its operations to expand and grow.
Related
- Youtube Blogger Buys $1.5m Mansion From Her Blogging Money
- Nigerian Man, Adebayo Ogunlesi Acquires The London Gatwick Airport (PHOTOS)
- Jay z acquire Armand De Brignac Champagne brand
- How Abuja Snacks Seller Became Millionaire Over Night!
- Why Google Blocked Linda Ikeji's Blog
- Blogger- Linda Ikeji Acquires 24 Million Naira 2014 Range Rover Sports Car
- Tony Elumelu Appointed New Chairman of UBA
Al;l these economic policies have not help us in anyway
ReplyDelete