…as banks risk suspension of operating licence
Financial and economic analysts have raised concerns over a proposed bill at the House of Representatives which seeks to prohibit age restrictions for the employment of Nigerian citizens in banks and other financial institutions.
The bill, which aims to amend the Banks and Other Financial Institutions Act 2024 (hereinafter referred to as the Principal Act), proposes making it a criminal offence for any bank or financial institution to impose age limits in its recruitment process. It was sponsored by Ajirioghene Ukodhiko, representing Isoko North/Isoko South constituency.
While many experts agree that age should not be a decisive factor in employment, there are worries that such a law could overreach, placing undue pressure on banks—particularly given their status as private institutions funded by private capital, and may have some bias.
The bill seeks to amend Sections 19 and 50 of the Principal Act by introducing new subsections. Section 19, which addresses the prohibition of employment of certain persons and interlocking directorships, is to be amended by inserting paragraph “19(1)(c)” to read: “There shall be no age limit for the employment of Nigerian citizens into any bank or other financial institutions in Nigeria.”
In addition, Section 50, which outlines offences by directors and managers, is to be amended by adding: “50(c): Where a bank or other financial institution applies age restrictions in its employment process, it shall be guilty of an offence and liable upon conviction to a fine not less than ₦1,000,000 and not exceeding ₦2,000,000, and suspension of its operational licence or certificate for a period not less than three months.”
Some banks in Nigeria currently impose retirement ages of 53 or 55, and require job applicants to be under 25.
Sam Nzekwe, financial analyst said the bill’s intention to widen employment opportunities is commendable, but it may infringe on the autonomy of banks, which are private-sector driven. He noted that the board of directors or annual general meeting should be the authority to determine employment standards, not the government.
Nzekwe further opined that while the removal of age limits could bring valuable experience into the industry, it might also mean retaining older employees who are less familiar with modern banking technologies. This, accoridng to him could reduce opportunities for younger professionals.
“Banks are private sector driven, it is not public sector. It is the board of directors or the AGM that should have the power to determine or approve age limits. The advantage of this bill is that it may bring wealth of experience into banking experience. On the disadvantage, older people may stay longer, who are not really tech savvy which is the trend, in the banking sector and younger people may have limited opportunities”, he said.
He also warned that the proposed amendment should not conflict with existing corporate governance codes set by the Financial Reporting Council (FRC), which already regulate employment practices in the sector.
A senior economic analyst, who requested anonymity, criticised the bill for being overly broad and lacking specificity. He questioned whether the legislation, in its current form, could permit the employment of underage individuals, pointing out that Nigeria already has a defined retirement age.
He argued that banks should retain the right to set employment standards based on operational needs. “The proposed law is too broad, they can’t remove age restrictions, but I know where this is coming from, some banks have set 55 or 53 year limit for retirement if you’re not an AD, but the proposed law is too loose, we need to be more specific, Nigeria has a retirement age. Also you cannot force banks. It will put the banks under pressure, banks should set their standard.
He also emphasised that the casualisation of labour in the banking sector is a more urgent issue, noting that up to 80% of banking staff are employed on a contract basis without long-term career prospects.
Jide Ojo , a Public affairs analyst expressed concern that age restrictions have led to corruption and falsification of credentials, as applicants often lower their ages to meet unrealistic entry requirements often capped at 25 years. He pointed out that this is unfeasible given the frequent academic disruptions in Nigerian universities, which delay graduation.
Ojo argued that age should not be a barrier to employment, especially with the increasing role of technology in boosting workplace productivity. “Age limit doesn’t make sense. It doesn’t work with current realities, let citizens be employed at whatever age as long as they have the requiyset skill and knowlege.”
He further criticised the high rate of contract staffing in banks, claiming that it is “absurd” and deprives workers of benefits like pensions, healthcare, and gratuities. In his view, the focus should be on skill and competence rather than age, and labour unions like the NLC and TUC should take up the issue of contract staffing.
Chukwuma Paul, a senior official at a Nigerian bank, acknowledged the potential advantages of removing age limits. He said it could create opportunities for older, qualified individuals who have been previously excluded, thereby helping to reduce unemployment among experienced professionals. He, however cautioned that some employers might be concerned about the ability of older staff to adapt to rapidly evolving technologies in the financial sector.
Paul also observed that allowing older candidates to enter at mid-to-senior levels could potentially slow career progression for younger employees already in the system. (BusinessDay)
