Banks prepare for massive job cuts as Naira nosedives

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Widespread increase in prices of goods and services, unemployment, and increase in costs of capital projects across Nigeria has been forecast as the Naira continues to freely fall against the dollar in a difficult time in the country.

Uncertainty looms over the nation’s foreign exchange market as the Naira fell further by N6. The Naira is now selling at N150 to a dollar on the official market, with terrible repercussions waiting to tell on the national economy.

The Nigerian Employers Consultative Association (NECA), the Nigeria Labor Congress (NLC), Manufacturers Association of Nigeria (MAN), and other members of the organized private sector have warned of difficult and unpleasant times ahead.

Already, there are indications that the banking industry would soon experience massive job cuts as banks have concluded plans to lay off thousands of workers as part of strategies to cope with the impact of the global financial crisis.

It is uncertain whether the CBN will sell foreign exchange and the quantity it will sell, whether it will further depreciate the naira, and by what margin. The situation has got to a point that people are at sea as to what to do, which has increased dependence on rumors and speculations.

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