MUST READ: Don’t employ without Approval, CBN Tells Banks

ego vs CBN

I found an article on PUNCH news online yesterday, and it stated that the Central Bank of Nigeria has ordered Nigerian banks not to employ new recruits until it gets approval from CBN. The reasons given by CBN was too poor for my understanding and does not justify the new ineffective and inefficient process.

I totally understand that Nigerian banks go through rigorous processes to employ first time employees, however, experienced employees get jobs easily through referrals and connections.

The only reason given by CBN for it’s new development is as a result of  “the rising cases of fraud and the attendant recycling of dismissed employees in the financial services”. 

My advice is as follows in 3 simple steps:

1. Nigerian Banks can curtail the above assertion,  by putting the right channels in place to reference check job applicants. This approach should be carried out by qualified Human Resource Professionals, directly employed by these banks at the head office level.

2. When an experienced employee applies for a new job, the HR team at the bank should run private security checks. They can do this with the help of the police. Yes the Nigerian Police database is still very functional and keep criminal records. These checks can be carried out before handing an employee job offer letter.

3. Nigerian banks should stop employing people based on connections!!! This is what is killing our country and the job market. Both banks and other sectors employ thousands today and sack thousands tomorrow. Hausa people will say ” “Menene amfanin sa?”” meaning of what use is it?

Meanwhile if you are interested in reading PUNCH’s report, find it below:

The Central Bank of Nigeria has barred Deposit Money Banks and discount houses from recruiting new employees without first seeking the central bank’s written approval.

The development followed the rising cases of fraud and the attendant recycling of dismissed employees in the financial services industry, according to a new CBN circular to the financial institutions.

The new directive, issued by the CBN Director of Banking Supervision, Mrs. Tokunbo Martins, takes immediate effect, according to the circular dated February 5.

The circular, entitled: ‘The need for the CBN prior clearance of prospective employees of banks’, read in part, “We refer to our circular to all banks dated July 16, 2004 on the above subject, wherein banks were required to obtain the prior approval of the Central Bank of Nigeria for all prospective employees.

“The intendment of the above referenced circular was to prevent the recycling, within the banking Industry, of erstwhile employees indicted, terminated or dismissed for fraud and other acts of dishonesty.”

The circular further stated that the new directive followed the representations made by banks during the CBN/Banks’ Human Resources Forum held in last December regarding difficulties in the strict implementation of the above circular.

As a result, the bank said its management had approved, as part of the amendments, that new employees of banks and discount houses could assume duty prior to obtaining the approval of the CBN, if this proved difficult or impractical.

However, it stated that for employees to assume duty without the CBN’s prior approval, banks and discount houses should within 30 days submit their curriculum vitae and other relevant information on the new employees to the CBN for clearance.