Banks to close in Nigeria, as economy goes gradually down.

A number of Deposit Money Banks in the
country will close many of what they
described as unprofitable branches as
the economic recession continues to bite
harder, investigation by Punch has
shown.
It was similarly gathered that most of the
banks would lay off hundreds of workers
between now and December.
The revelation came barely 24 hours
after Unity Bank Plc laid off about 300
workers, more than the 220 that was
mentioned last week.
Diamond Bank Plc and Ecobank had
earlier in the year sacked over 3,000
members of their workforce.
It was learnt that following the economic
downturn in the country, a number of
bank branches could no longer justify
their existence as cost analysis had
shown that the financial institutions
were spending more on salaries and
overheads than the income from the
branches.
Some top bank executives, who
confirmed the development to our
correspondent under the condition of
anonymity on Monday, said some
lenders might be forced to relieve more
workers of their duties before the end of
this year.
An executive director in one of the banks
that recently asked some of its workers
to go said, “We have laid off some of our
staff members but that it still not enough.
Many branches are just existing for the
sake of being there. They are not
generating enough income. What they
are bringing in is far less than what the
bank is incurring as costs on them.
“We may have to close such branches
before the year ends. I know a number
of other banks that are planning
something similar.”