By Victor Ahiuma-Young
NATIONAL Union of Banks, Insurance and Financial Institutions Employees, NUBIFIE, has recommended that funds in the Treasury Single Account, TSA, be injected into the banking system to re-energize the sector and the economy in general.
President of NUBIFIE, Danjuma Musa, who spoke in Lagos, argued that TSA was one of the government policies that affected the banking sector negatively, explaining that it created liquidity challenges for the financial institutions.
He stated: “TSA was a policy encouraged by World Bank to institutionalize fiscal control and accountability on government income/receipts through a consolidated single account as against many fragmented accounts. The TSA policy was supported by the Bankers Committee but almost all bank chief executives officers (CEOs) were not happy with the massive withdrawals of government funds from the banking system which created a kind of liquidity crises.
“Our great Union supported the idea behind the policy; however we call on the government to find a way to inject the funds back into the banking system with a proviso as to be deployed only to critical sectors of the economy.”
Musa contended that the finance industry (Banks, Insurance and other Allied Institutions) had witnessed radical transformation in all spheres of its activities, ranging from frequent government policy interventions, ever evolving innovations in ICT-driven operations and new employment systems and its impact on economic and social status of workers among many others.
On outsourcing, the NUBIFIE President, said: “The banking and insurance industry has witnessed paradigm shift in terms of employment policies which has emphasized “leanness” as a strategy for reducing cost and growing profits through outsourcing some work schedules not considered as “core” functions of their businesses, to outsourcing forms to manage on their behalf.
On the prevalent practices of outsourcing non-core functions by banks, he stated: “While outsourcing has been traced to globalization and it’s practices has assumed a global dimensions, it can be argued whether it’s application by businesses, especially in our country, could pass the test of integrity or indeed compliance with global best practices and our domestic Labour laws as it relates to fair labour practices and the protection of individual dignity and collective bargaining rights of workers.”