First Bank has reportedly terminated the employment of 100 senior staff members, a move that underscores the worsening economic difficulties in Nigeria under President Bola Tinubu’s administration.
The development was reported on Monday by market analysis platform Nairametrics, though the platform did not specify the reasons behind the layoffs. The bank has not released any official statement addressing the matter.
This decision adds to the wave of job losses that has hit Nigeria’s banking sector in 2024, as businesses struggle to navigate the country’s increasingly volatile economy.
Read also: First Bank sacks 100 high-ranking staff amid Nigeria’s economic woes
Impact of economic policies on key sectors
The adverse effects of President Tinubu’s economic policies are being felt far beyond the banking industry. In January 2024, Shell announced its exit from oil exploration activities in Nigeria, declaring plans to sell its onshore operations, The Shell Petroleum Development Company of Nigeria Limited, to Renaissance.
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The Manufacturers Association of Nigeria (MAN) has also expressed concerns over the state of the economy, revealing that 767 companies shut down operations in 2023, with another 335 classified as distressed. MAN specifically criticised the introduction of the Expatriate Employment Levy, calling it an additional burden on an already struggling sector.
“The manufacturing sector is grappling with a range of challenges,” the association stated on Wednesday.
Telecommunications industry at risk
The telecommunications sector is also under threat. On Monday, the Association of Licensed Telecommunications Operators of Nigeria (ALTON) warned that its members might resort to service reductions if tariff adjustments are not implemented. MTN and other telecom operators have for years bemoaned the withholdment of approval of the Nigerian Communications Commission to raise call and data rates.
Starlink has stopped selling new Internet packages as the company insists that the NCC allow operators and Internet providers review their pricing to reflect the current economic challenges bedevilling the nation.
Read also: Starlink Nigeria suspends new orders, locks horns with NCC over price increment
ALTON Chairman Gbenga Adebayo highlighted the severity of the situation, noting that the industry’s ability to maintain service quality was in jeopardy. He cautioned that without intervention, the sector could face significant disruptions, including reduced services, economic instability, and broader national repercussions.
Broader economic strain
These developments reflect the broader economic strain facing Nigeria, with key industries struggling to stay afloat amidst policy decisions and economic uncertainty. The layoffs at First Bank are just one of many indicators of the challenges businesses and individuals are contending with in the current climate.