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Mass sacks: No bailout for banks, FG says

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Ngige booed trying to defend Buhari’s appointments
The Federal Government has said it would not provide bailout funds to banks to boost their operations in the face of the persistent job losses in the banking sector.
This was disclosed by a top government official on Saturday, who said that it would be wrong for the government to bail out the banks with pubic funds when every other sector of the economy were faced with one challenge or the other.
The government official, who spoke on the condition of  anonymity, said if the government announced any bailout for the banking sector, all other sectors of the economy would start requesting for their own package.
He further stated that the government does not have enough funds to finance its operations, therefore, bailing out any sector will further compound the current economic situation in the country.
“We all know that this government is seriously looking for money to finance its operations.
“So, can a government that is looking for money and that is also struggling to pay its workers’ salaries be able to provide a bailout for any sector? Where will such money come from? I can tell you that such is not currently feasible.”
This was further confirmed by the Special Adviser on Media to the Minister of Finance, Mr. Festus Akanbi, when he said the option of a bailout for the banks was currently not on the agenda of the government.
It would be recalled that no fewer than 1,400 workers have been sacked in the last two weeks by banks in response to the challenges in the nation’s economy, which have led to most of the financial institutions to record declining profits.
Ecobank Nigeria sacked over 1,040 of its employees, while Diamond Bank and Skye Bank also retrenched 200 and 175 members of their workforce recently.
First Bank, through FBN Holdings, had also said it would prune the number of its employees by 1,000.

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