Mass Purge Hits Ecobank, 50 Managers Sacked

Ecobank Nigeria Limited has confirmed reports that it had carried out a downsizing of its workforce. According to a report, 50 top management staff, whose ranks range from Assistant General Manager, Deputy General Manager and above, with monthly salaries ranging between N1 million and N2 million were affected in the retrenchment exercise this year. 

The report said that the officials were handed their sack letters at the bank’s head office in Victoria Island, Lagos, Southwest Nigeria last Tuesday.

In a statement issued yesterday, the lender, however, said the employees let go were those who performed below expectation in an appraisal exercise. It said over 300 top performing staff were promoted. 

A source at the bank told the New Telegraph that the appraisal exercise had been a regular occurrence in recent years, which usually sees staff being retrenched and promoted in the first quarter of the year.

In his statement announcing the promotion, Deputy Managing Director of the bank, Mr. Anthony Okpanachi said the bank is fully committed to rewarding excellence and will continue to take appropriate positive action in line with international best practice to sustain excellence in its work force.

In his words, “Our people are our precious assets who enable us maintain service quality standards, uphold customer satisfaction and enhance our brand experience”. He explained that the affected staff were selected through an appraisal exercise conducted using an in-house developed performance management system which uses both financial and nonfinancial metrics to categorize staff. 

According to Mr. Okpanachi, the same Performance parameter used to determine the performance of those promoted, also revealed underperformance of the disengaged workers.

Hemaintained that Ecobank is an institution where high professional culture and exceptional performance, innovativeness and professionalism are recognized and rewarded. Analysts have predicted that the increasingly harsh business environment will compel banks to cut jobs this year.

Indeed, in his firm’s projection for 2016, issued early last month, Chief Executive Officer of Financial Derivatives Company Limited (FDC), Mr. Bismarck Rewane, predicted that Deposit Money Banks (DMBs) may, “commence massive staff retrenchment in Q2 2016.”

A few weeks after he made this prediction, First City Monument Bank (FCMB) sacked about 500 staff in what sources described as the first phase of a retrenchment exercise that will enable the lender to significantly reduce costs.

A top official of a new generation bank, who did not want his name in print, said that the continuing slide in oil prices has worsened prospects for Nigerian banks this year. He said, “Banks are highly exposed to the oil and gas sector. But these loans were given out when oil prices were above $100.

Since June 2014 when the sharp decline in the price of oil started, many of these companies have begun to default on their loans. This has resulted in most banks having to restructure these loans.

Non-Performing Loans (NPLs) are rising to a level where they could trigger another crisis in the industry.” In a recent statement, Fitch Ratings noted that Nigerian banks’ nonperforming loans have been rising over the past 12 months.