An Evaluation of Bank Workers Welfare in Post Consolidation Era in Nigeria

Abstract

The bank consolidation exercise that came in form of merger and acquisition or complete buy-over in some cases in Nigeria put the banks in vantage position in terms of increased capital base, competitive strength and arguably improved performance. Furthermore, many scholars had written so much about how the exercise led to employee downsizing through retrenchment, rationalization and cost reduction with other attendant consequences on job security, employee motivation and on the long run decreased productivity. However, there is dearth of research in terms of bank workers welfare after the consolidation exercise. Hence this study examined employee’s welfare after the banking reforms in Nigeria. A sample size of four hundred and seven (407) employees from ten (10) selected banks in Ilorin metropolis was purposively chosen in order to achieve the objectives of the study. Primary data were obtained with the aid of questionnaire administered to bank workers. Secondary data were obtained from the official book of the various banks. Data were analyzed with appropriate descriptive and inferential statistical tools. Results revealed that employee welfare were compromised in spite of the increase in capital base that accrued to the banks from the consolidation exercise. Consequently, the study recommended that regulatory agencies and managements of banks should incorporate factors of job security and motivational incentives in subsequent reforms.

Keywords: Bank Consolidation, Reforms, Workers Welfare, Nigeria.

Corresponding author: OLANIYI Taiwo Azeez