The House of Representatives has passed a bill to prohibit the employment of contract and casual staff in Nigerian banks, moving the legislation forward after its second reading on Thursday.

Sponsored by Fuad Laguda, an APC member representing Surulere I federal constituency in Lagos, the bill seeks to amend the Banks and Other Financial Institutions Act 2020 to “prohibit, criminalise and penalise” banks that hire staff on casual or contract terms.

Laguda told lawmakers that the bill aims to end exploitative practices affecting millions of Nigerians employed informally in the banking sector. He noted that existing laws, including the Labour Act 2004 and the Employees’ Compensation Act 2010, do not adequately protect the welfare of casual and contract workers.

Citing a 2023 report by the Chartered Institute of Bankers of Nigeria (CIBN), the lawmaker said banks often use casual and contract employees to reduce costs related to pensions, minimum wages, health insurance, promotions, bonuses, study grants, and severance packages. He added that such staff make up about 65 percent of the banking workforce.

The proposed law also seeks to enforce section 7(1) of the Labour Act 2004, which limits employment without formal recognition to three months.

“I urge my colleagues to support this bill because it corresponds with the viewpoints of the governor of the Central Bank of Nigeria, Mr Olayemi Cardoso, who said casual and contract staff in Nigerian banks are exposed to poor working conditions,” Laguda said.

He stressed that banks often hire casual and contract workers to avoid legal obligations, leaving them vulnerable to systemic inequalities, emotional abuse, and mental health challenges.

Deputy Speaker Benjamin Kalu called for a voice vote, and lawmakers unanimously approved the bill, allowing it to progress to the next stage of the legislative process.