In Nigeria, fund-labeled initiatives have become a constant pill to calm the raging storm of economic hardship. These funds barely serve their purpose because skilled talents still leave the country massively on a daily basis. In a bid to curb the maggots infesting the banking sector, which is plagued by brain drain, the Chartered Institute of Bankers of Nigeria (CIBN) introduced a Human Capital Retention Fund to address the trend of mass emigration of bank workers.
According to the president and chairman of the council, Ken Opara, the retention fund is one of the many initiatives supporting the banking industry and the Nigerian economy. Although the retention fund is a good stride towards bettering the banking sector and the Nigerian economy at large, it cannot solely stop the migration of skilled talents in the banking sector.
Brain drain stems from the effects of poor working conditions, rigid schedules, and poor technological advancement. Among several issues slowly dissembling the banking sector, funds can do less because these are structural problems that should be tackled from the roots.
Aside from the low pay and long working hours, limited career advancement is a problem associated with the high emigration of bank workers. There is hardly any room for career improvement in the banking sector due to job insecurity. According to a report by the Nigeria National Bureau of Statistics (NBS) two out of every five people working in Nigerian banks are contract staff. Contract staff — a group of temporary workers – which leaves them out of any employer benefits that may come with the position filled.
The NBS also reported that banks operating in Nigeria as of September 2020 employed around 96, 000 workers and over 40, 000 (42.11%) of them are contract staff. No less, contract staff have no job security, which also means that about 42% of Nigerian bank workers take on job roles with a deadline countdown. Every passing day on the job is a countdown to retrenchment, leaving them with no choice but to migrate to the other side, where the grass seems greener.
Equally, most of the banks operating in Nigeria are understaffed; hence, an employee plays the roles of two under very poor working conditions. According to an interview conducted by The Punch, a Nigerian newspaper, bankers under the aegis of one of Nigeria’s leading banks work for over 13 hours with pay barely enough to survive. This is a reason glaring enough to make any bank worker migrate for better career opportunities. With multiple responsibilities carried out under poor conditions with subpar equipment, frustration is not far-fetched.
The Nigerian banking sector needs to do more than invest funds in manpower retention. Rather than invest in initiatives that procure temporary solutions, Nigerian banks and financial institutions should invest in improving the working conditions of their employees. Additionally, a thriving environment that will create endless opportunities for professional development should be fostered. Banks and financial institutions should subscribe to professional certifications and conferences.
The working space of every employee should be conducive to enhance productivity. Financial institutions should collaborate to procure long-term solutions to alleviate the issues associated with the mass emigration of their workers. Funds won’t halt the brain drain in the banking sector; a thriving environment driven by goals for professional development should instead be facilitated.
