By Bimbola Oyesola
Organising is a major duty of Organized Labour, but this has witnessed a significant decline over the years due to a clause in the Labour law.
For Labour leaders this delay in reviewing Labour Act seems deliberate attempt by government to end unionism in country.
In this exclusive interview, Comrade Olusoji Oluwole, the National President of the Association of Senior Staff of Banks, Insurance and Financial Institutions (ASSBIFI), discusses the current state of the union, the impact of economic challenges on the financial sector, and the future of unionism in Nigeria.
He also shares candid views on banking recapitalisation, the rise of fintechs, and the challenges facing Nigerian workers today.
Present state of the union
We are at a turning point that will define the future of the association. Our membership is now largely composed of younger individuals, as opposed to the older generation who founded the association. This shift means we must begin to focus on how the association operates and continues to grow by engaging these younger members.
Several years ago, our past leaders foresaw this trend and created the Youth Wing of ASSBIFI. Today, we have a Youth Council with its executive. At our last Special Delegates Conference, where we reviewed our constitution, we ensured that at least one youth must be part of the national executive. So basically, what that means is that the youth leader of ASSBIFI is now automatically a member of the national executive, though this does not limit other youths from aspiring to other positions within the union.
By youth, what age range do you refer to?
We’re referring to those below 35 years of age. This is a globally recognized age threshold for youth, not just within ASSBIFI.
ASSBIFI adaptation to the current economic challenges
Just like any other business, we are affected. However we have tried restructuring our operations to avoid being crippled financially and to ensure we operate effectively. Our members—whether they are our staff or workers in financial institutions—are Nigerians and face the same economic challenges as everyone else.
Our industry is unique due to the nature of our work. We work in an industry where there are codes of governance and operations. We manage people’s money, insurance, and payments. This means we must live above board and operate with higher standards than other industries. We constantly tell ourselves to cut our coat according to our cloth. It hasn’t been easy, but adaptation is crucial.
CBN’s current recapitalisation and its effect on workers
The CBN has provided a clear two-year roadmap, allowing institutions to determine how to raise funds and choose their preferred license categories. And also given the opportunity for those who may want to begin talking of mergers and acquisitions. Since last year that the exercise began, some banks have gone to the capital market for private capital, rights issues, or plan public offerings. With what we have seen playing out already, there is evident investor interest in the banking sector.
As for our members, we do not foresee major job losses. Increased capital typically means business expansion and more risk-taking, which requires more personnel. However, two areas are of concern to us: artificial intelligence and potential mergers.
Let’s start with AI… How is ASSBIFI preparing for the impact of artificial intelligence?
AI isn’t new, and it’s growing. Our concern is for members who aren’t tech-savvy. We’ve emphasised the need for upskilling and have engaged member organisations to invest in retraining.
While some training efforts are underway, members are also self-learning. The beauty of AI is its adaptability. Most institutions introducing new systems will still need to train existing staff, not necessarily hire outsiders. After all, human experience is key in designing, testing, and managing AI systems.
And regarding mergers and acquisitions?
Yes, we’ve raised concerns with regulators and banks. Mergers may cause role duplications and branch shutdowns, especially in overlapping areas. But while some branches may close, expansion could happen elsewhere. We have expressed our concerns to the regulators and to the institutions, and we are monitoring closely to see how it plays out eventually.
Let’s talk about fintechs. Do you think they’re taking over traditional banks?
Fintechs certainly woke up traditional banks. Their main advantage is operating without physical branches. But today, banks also offer similar app-based services. While fintechs excel in quick transactions and savings, traditional banks still dominate in complex, high-volume business transactions. For instance, when you look at the business aspect of things, fintechs have limitations on certain volumes and types of transaction. Traditional banks still have the upper hand in this regard. Although i believe the founders of these fintechs are also looking for ways to break into that area as well.
That said, the number of physical bank branches may reduce over time. But brick-and-mortar won’t disappear entirely—many people still prefer in-person services. Even with regulation, not all fintechs offer the physical presence or breadth of service that traditional banks do.
With fewer physical branches and more automation, won’t jobs be affected?
Not necessarily. Banking goes beyond branches. Banks are developing expertise in agriculture, transportation, health, and tech. If you look beyond bank branches, you will find out that there are a lot of other businesses/activities going on that create value for businesses. Especially in terms of funding/loan facilities.
These require human resources. While automation impacts certain roles, it creates demand in tech, strategy, and sector-specific support. For example, one bank created a monitoring system for remote farmers—this secures both the bank’s loan and supports the farmer’s operations. So as I said earlier, I insist that there would be no major negative impact on job security in the sector.
Unionising more financial institutions in 2025
ASSBIFI already covers banks, insurance companies, pension administrators, and HMOS. But we face a major challenge, which is the outdated Labour Act, which is over 20 years old and contains anti-union provisions like ‘voluntarism’, allowing workers to opt out of union membership. Employers now use this to make new employees waive their union rights during onboarding. “Forget about joining Unions or forfeit your employment.”
The delay in reviewing the Labour Act seems to be a deliberate attempt by the government to end unionism in the country, which will not help. Moreover, this contradicts global ILO conventions on the right to organize. The Labour Act’s review has stalled for years by the Senate. We rely on umbrella bodies like the NLC and TUC to advocate, and we contribute to these efforts. But the government must act to prevent anarchy, which thrives in non-unionised environments.
Are you doing enough as a union to lobby for this cause?
Yes, through our parent unions, we contribute ideas and participate in advocacy. I remember the TUC President, Comrade Festus Osifo, addressed this last year. But it requires deeper lobbying and proactive legislative action.
Overcharging customers through ATM, card maintenance, others
Every charge banks apply is regulated and approved by the CBN. For instance, when ATM charges were introduced, they were N100. Later, the CBN reduced them and directed banks not to charge customers using their own ATMS. Some charges, like stamp duty, belong to the government; banks just collect them.
Some institutions cannot do without collecting these charges. Running 24/7 services isn’t cheap. Banks must power ATMS, pay for software licenses, and maintain tech infrastructure. Besides, they are offering you some level of convenience as opposed to you going to a physical branch. Some charges go to third-party switching companies. The N15 ATM fee, for instance, is shared among multiple parties.
Yet, customers feel banks profit from their deposits while still charging them. Sterling Bank even scrapped most transaction charges. Doesn’t that show other banks can survive without these fees?
Sterling’s move is brave and commendable. But it will cost them—an estimated N4 billion annually. It’s a strategic gamble that may bring more business, but the cost is real. Many banks rely on these small fees to fund parts of their operations. And yes, these banks have shareholders who expect returns. So, eliminating charges may reduce dividends and staff benefits if not properly managed.
ATM services have become unreliable for years, forcing people to rely on costly POS operators. What caused that?
That was largely due to the Naira redesign crisis in 2023. The CBN only printed about N500 billion, and we questioned if that amount was sufficient. Banks got so little cash, some couldn’t even fill one ATM cassette.
Many retailers, previously major cash depositors, started hoarding or recycling cash via POS operations. Some banks even had to evacuate cash from other regions. POS businesses boomed, often charging exorbitantly, but banks couldn’t print money—they relied on CBN and depositors.
CBN eventually started cracking down strongly on POS operators and brought down abuse. That’s when ATMS started working again. Ironically, people who complained about N65 ATM fees were paying N2,000 to POS agents.
Do banks get consulted when the CBN sets charges?
Absolutely. The CBN doesn’t unilaterally fix charges. Banks are part of advisory committees. The final circular reflects a ceiling—banks can charge less or nothing at all. CBN also charges banks for its services, and sometimes those fees are passed down.
Do banks make losses on ATM operations despite these charges?
Yes, in many cases. Each business unit is tracked for income and costs. Cash withdrawals often run at a loss due to infrastructure, security, and maintenance costs.
Steps to cushion the economic effects on members/relief program
We’re limited in what we can do due to dwindling membership and rising costs. Our constitution also forbids direct cash transfers to members. However, we’re exploring partnerships to offer indirect support or services. But we can’t increase dues at this time.
Demands from the government?
First, the Labour Act must be urgently reviewed to restore workers’ rights to organize. Second, reforms should have a human face. The government should subsidise essential services like education, healthcare, and transportation. Security also needs improvement. Despite paying taxes, people are overburdened, paying for everything privately—security, schools, hospitals.
Rating the current administration
This administration has dared to take bold steps where others haven’t. But many officials haven’t walked the talk. There’s a lack of fiscal discipline, and reforms have been implemented without cushioning effects. Nigerians are suffering—more people are trekking, switching off power, and drastically adjusting their lives. Policies must be humane and practical.
May Day message to members
Remain steadfast, resilient, and believe in yourselves. Let’s stop complaining and start solving problems. We must not always wait for those in power—solutions must come from us, the majority and the most affected.