The Acting President of the Association of Senior Staff of Banks, Insurance and Financial Institutions (ASSBIFI), Isaac Fanimokun, has assured workers in the banking sector that the ongoing recapitalisation exercise will not result in widespread job losses, stressing that the process is designed to strengthen banks and expand their capacity to support economic growth.
Fanimokun gave the assurance while speaking on the Ask the Expert Segment of Trade FM’s Breakfast Business Briefing, where he explained the importance of recapitalisation, its impact on banking professionals, and the opportunities it presents for the wider economy.
He described recapitalisation as a corporate or regulatory process aimed at increasing the capital base of banks to make them stronger, more resilient, and better positioned to undertake large-scale financial transactions.
According to him, stronger capital positions would enable banks to provide more credit to businesses, support major projects, protect depositors’ funds, and contribute more significantly to the growth of the real sector.
“Banks need to recapitalise so that they will be able to do big-ticket businesses. When they shore up their capital, they become more resilient, there will be financial stability, and banks will be able to contribute to the real sector of the economy because they will be able to lend more,” he said.
Fanimokun explained that recapitalisation can be achieved through various methods, including the issuance of new equity, Initial Public Offers (IPOs), private placements, right issues, mergers and acquisitions, retained earnings, and debt restructuring.
Recapitalisation and Job Security
Addressing concerns among bank workers that recapitalisation could lead to job losses, the ASSBIFI president acknowledged that such fears were based on experiences from previous exercises, particularly the 2004/2005 banking consolidation under former Central Bank of Nigeria (CBN) Governor, Charles Soludo.
He noted that the earlier exercise reduced the number of banks significantly, resulting in some workers losing their jobs because smaller banks were consolidated into larger institutions.
However, he said the current recapitalisation exercise has been managed differently, with adequate time given to banks to meet the new requirements and prevent disruptions in the industry.
According to him, most banks have successfully met the requirements, while institutions that faced challenges have been managed carefully to avoid panic and protect employees.
He added that, to his knowledge, no bank worker has lost a job as a direct result of the latest recapitalisation exercise.
“Recapitalisation does not necessarily mean job loss. In fact, for banks that move into higher categories of banking licences and expand their operations, they will require more hands because they will spread, open new opportunities, and grow their businesses,” he said.
Fanimokun, however, advised banking professionals to continuously upgrade their skills, noting that the industry is becoming more competitive and technology-driven.
He urged workers to develop expertise in areas such as data analytics, risk management, credit analysis, cybersecurity, and financial technology to remain relevant.
He said traditional banking roles were changing rapidly due to digital transformation, adding that employees who fail to adapt to new demands may struggle to remain competitive.
“The reality is that nobody can continue doing what they were doing 20 years ago and expect to remain relevant. Workers must reskill and update themselves through certifications and training,” he said.
Recapitalisation to Boost Economic Growth
Fanimokun explained that the benefits of recapitalisation go beyond meeting regulatory requirements, stressing that stronger banks would have greater capacity to finance businesses and development projects.
He said increased lending would enable individuals to establish businesses, create jobs, and contribute to reducing unemployment.
According to him, when banks finance government projects and private sector activities, the impact spreads across the economy through increased production, employment opportunities, and improved economic activities.
He also noted that stronger banks would attract foreign investors by increasing confidence in Nigeria’s financial system.
Fanimokun said improved regulation and corporate governance have helped prevent the banking failures experienced in the past, adding that effective management of the current recapitalisation exercise has maintained stability in the sector.
Digital Transformation and Future Banking Skills
On the impact of recapitalisation on digital transformation, he said increased competition among banks would accelerate the adoption of technology.
He noted that customers now rely more on digital platforms for banking services, reducing dependence on physical banking halls.
According to him, the future of banking will require professionals who possess specialised skills rather than only those who perform traditional banking functions.
He identified business development, credit appraisal, risk management, and technology-related roles as areas where skilled professionals would remain in demand.
Advice on Investment
The ASSBIFI president also encouraged Nigerians to embrace investment but advised individuals to understand their financial goals, age, and risk tolerance before making investment decisions.
He explained that younger investors may be able to take higher risks because they have more time to recover from possible losses, while people nearing retirement should consider safer investment options.
He identified treasury bills, government bonds, and fixed deposits as options for low-risk investors, while noting that higher-risk investments should only be considered by individuals who understand the possibility of losing their capital.
Fanimokun stressed that investment should become a culture among Nigerians, advising people to start early and prepare for future financial needs.
“The earlier, the better. Everyone needs to invest, but you must understand your investment goal and your risk tolerance level,” he said.
He added that proper investment planning would help individuals prepare for uncertain periods and achieve long-term financial security.
