CBN frees bankers to constitute labour unions

The Central Bank of Nigeria (CBN) has ordered financial institutions under its regulation to recognise their employees’ rights to associations, including safe and fair labour conditions, in line with international standards.

The central bank stated this in a letter to all banks, discount houses and development finance institutions posted on its website late Tuesday.

The letter signed by the director of banking supervision, CBN, Mrs. Tokunbo Martins, was titled: “Responsibility of all Banks, Discount Houses and Development Finance Institutions with Respect to Human Rights under the Nigerian Sustainability Banking Principles (NSBP)”.

According to the letter, “discount houses and development finance institutions are advised to note that their staff/employees are at liberty to freely associate in furtherance of their rights as allowed by national regulations and laws and international conventions and treaties Nigeria is a signatory to.”

Key policies and requirements under the banking principle include recognition of employees’ entitlements to safe and fair labour conditions and to exercise collective and individual rights to associate and speak freely, as allowed by national law.

The principle further provides that a sustainable banking approach recognises and respects human and labour rights in a bank’s business operations as well as its business activities.

The central bank said it had noticed that banks, discount houses and development finance institutions were not complying with the spirit and letters of these principle, which also emphasised respect for human rights in business operations and business activities.

In addition, it states that a bank’s approach to human rights should be consistent with promoting the requirements, and improving the enforcement of the Nigerian Constitution, the United Nations Declaration on Human Rights and other international treaties to which Nigeria is a signatory.

The CBN thus declared that it shall constitute an infraction, which will attract sanctions where a bank, discount house, or development finance institution is found in any manner to hinder or prevent its staff/employees from exercising their rights to free association, as required under principle three and other extant regulations and laws.