The Nation Newspaper

Tag: 000 jobs

  • Banks to axe 10,000 jobs

    Banks to axe 10,000 jobs

    Twenty-One Deposit Money Banks (DMBs) are expected to fire at least 10,000 out of an estimated 110,000 work force within the year, The Nation has learnt.

    Internal sources within the banks said the lenders are downsizing following rising difficult operating environment, cost of overheads and tough policies from regulators making it difficult for them to post huge profits as was the case few years back.

    The source said a large part of the workforce to be axed will come from Keystone Bank, one of the three bridged banks expected to be sold to new investors within the first half of this year.

    Already, First City Monument Bank Limited, which sacked over 200 of its workforce early last month, hinged the decision on tough operating environment. The massive workforce disengagement, which affected almost all cadres of its workforce, it was gathered, was due to policy shifts in the banking and operational environments, including tougher regulations.

    Regulatory pressures from the Central Bank of Nigeria (CBN) and other regulators have intensified pressure on banks’ profitability, cutting down their Return on Investments (RoI) as they gradually lose their traditional areas of income. This has led to massive workers disengagement in many lenders.

    For instance, the ongoing implementation of the zero Commission on Turnover (CoT) fees, increase in contribution to the Asset Management Corporation of Nigeria (AMCON) and Nigeria Deposit Insurance Corporation (NDIC) levies and high Cash Reserve Ratios (CRRs) are key policies depleting banks’ bottom lines.

    The 21 commercial banks are expected to lose over N100 billion yearly to the zero CoT policy; N140 billion to the AMCON levy which has been increased from 0.3 per cent of banks’ total assets to 0.5 per cent and nearly N100 billion to the NDIC levy.

    Reacting to the development, FCMB’s Group Head, Corporate Communications and Brand Management, Diran Olojo, said: “As a result of the various policy changes that have affected banking adversely and macroeconomic challenges, volumes of business in various geographies and product areas have reduced significantly. These factors have resulted in the redundancy of various roles.

    “Regardless, we have continued to hire in various areas of the group, particularly those that will drive financial inclusion and provide support for the real sector.”

    Olojo said the lender was not able to redeploy the affected workers from some redundant roles to new ones, hence the action. “We have thus been compelled to effect a minor reduction in our staff strength. We will continue to create employment opportunities in the areas that align with our national economic priorities and the growth areas of the financial service industry,” he said.

    “We remain optimistic about the long term prospects for the industry and will be a net creator of jobs over the next few years as we expand our franchise to support national priorities such as financial inclusion, import substitution and non oil export promotion,” the bank’s spokesman added.

     

     

     

     

    But the FCMB Group Plc assured in a statement that its subsidiaries: First City Monument Bank (FCMB) Limited, FCMB Capital Markets Limited and CSL Stockbrokers Limited, will come out better this year.

    In a statement, the holding company said its subsidiaries would also deepen the financial services support they provide to customers and the nation at large with their array of products and bespoke solutions to further enhance customer experience in their respective target markets.

    Managing Director of FCMB Group Plc, Peter Obaseki, said, ‘’2016 will be characterised by continued growth in retail contribution, stabilisation of wholesale banking revenues and increased focus on cost efficiencies’’.

    He added that the retail banking business of the Group, which is driven by First City Monument Bank (FCMB) Limited, has continued to ‘’show greater resilience and earnings momentum over the years’’.

    He disclosed that FCMB Group Plc would in the fourth week of January this year announce the completion of the banking subsidiary’s interim audit, which should pave way for the release of the 3Q15 earnings results of FCMB Group Plc.

    He said third quarter 2015 earnings will fall below earnings for the same period in 2014, due to a spike in impairments particularly in the energy sector and the significant reduction in trade finance-related revenues due to foreign exchange illiquidity. This trend, he added, will continue December 2015 and largely emanated from wholesale banking activities’.

    He further stated that, ‘’we will increase focus on cost efficiencies (opex, funding and risk) in order to restore earnings levels”. FCMB Group, as a holding company, is one of the dominant players in the Nigerian financial landscape with subsidiaries that are market leaders in their niche segments.

     

     

  • Amosun to investors: create wealth, jobs

    Amosun to investors: create wealth, jobs

    OGUN State Governor Ibikunle Amosun has urged investors to create wealth and job opportunities to better people’s lives.

    He spoke when he received the management of Procter and Gamble Nigeria Limited in his office in Abeokuta yesterday.

    The governor said while government would continue to foster peaceful co-existence between investors and their host communities, they should facilitate harmonious relationship with the communities through impacting social corporate responsibility.

    Amosun said: “I must commend you for what you have been doing. But there are still a lot to be done and this is why we still need assistance from investors like you to create wealth and job opportunities that would better the lives of our people. And on our part, we will continue to render services that would make your operations and relationship with us and the people seamless and mutually beneficial,” he stated.

    He solicited collaboration in the area of infrastructural development, particularly the construction of roads within the industrial areas of the state.

    Amosun promised government’s readiness to give the necessary support that would further ease the operations of industries in the state.

    The governor submitted that his administration would continue to give priority to developing and consolidating of roads in the industrial areas of the state, notwithstanding the dwindling federal revenue allocation.

    The company’s managing director, George Nassar, pledged his organisation’s continued partnership with the government on the state’s development, “particularly provision of basic amenities in critical segments of the society”.

    “This has been clearly demonstrated by the intention of the company to construct a three-room building block for Agbara Police Station and the donation of patrol/response vehicle to Agbara Police Command, also to aid policing in the state,” he added.

    Nassar added that the firm planned to procure a 350 KVA sound proof generator to the state Ministry of Health, assuring that the donations would be completed by next month.

     

  • Oando’s LPG initiative to create 36,000 jobs

    Oando’s LPG initiative to create 36,000 jobs

    The introduction of Oando OGAS 3kg cooking stove targeted at low income households could create a minimum of 36,000 jobs.

    Chief Executive Officer, Oando Marketing, Mr Abayomi Awobokun, made this known during his presentation at the Oando/ACCESS AFRICA (Agriculture, Climate Change and Entrepreneurship Support Services) summit in Abuja.

    He said: “Our goal is to successfully switch up to five million households to cooking gas from kerosene and other dirty fuels over the next three to five years. We believe this effort will not only boost the lives of millions of Nigerians, it will also create up to 36,000 jobs across the value chain. These jobs will be in the retail, distribution and manpower development sectors as the LPG value chain grows and develops.”

    The stove, which has a burner, cylinder and gas, was introduced by Oando Marketing PLC to alleviate the suffering associated with firewood, charcoal and others for cooking.

    It was the outcome of one year research. The product, which is targeted at the low income earning customers is praised for its target audience who can refill their gas using the Pay-As-U-Gas (PAUG) facility at any Oando station. It allows customers to buy LPG through a metering system.

     Oando has signed an agreement with Lift Above Poverty Organisation to provide loans through its micro finance banks to low-income households.

    Awobokun said: “This is another important step in our quest to provide innovative and affordable LPG cooking stoves to an estimated five million low income households over the next five years. We are strongly encouraged by the reception and feedback from consumers and other relevant stakeholders since we introduced the three-in-one gas cooking stove this year. This partnership with LAPO is one of many to boost our effort to switch majority of Nigerians from the use of biomass fuel to deepen LPG utilisation.”

    To further enhance accessibility, Oando Marketing initiated the three-wheeler supply scheme (Keke Napep) to supply O-gas to customers who make requests to either refill or exchange cylinders via the O-gas care-lines.

    To address the issue of affordability, the company introduced the Pay-as-u-gas metering system to enable customers refill with any amount they can afford per time.

    President of the Nigeria Labour, Abdulwaheed Omar, said: “It is something that has been long overdue for Nigerians to have something like this.

    “So, I want to thank and congratulate Access Nigeria and Oando Marketing PLC for partnering with you to ensure that Nigerians will be able to get something in terms of facilitating cooking that is going to be very easy simple, and above all safe. We in the Labour movement, we wholeheartedly welcome this idea. We are ready to partner with Access, Oando and every other stakeholder to ensure the success of this project”