How Will Bank Strikes Affect Your Money and Transactions?

In a recent update, the National Union of Banks, Insurance and Financial Institutions Employees (NUBIFIE) has issued a warning that it may join forces with the Nigeria Labor Congress (NLC) to embark on a two-day nationwide strike. The strike is aimed at drawing the government’s attention to the country’s current “economic circumstances.

The union has planned to withdraw all activities starting from Tuesday, 5th September. The strike is a call for the government to address their demands concerning the prevailing economic hardship. A memo released on Sunday by the union’s General Secretary, Mohammed Sheikh, stated that the NLC had directed all its affiliated unions to withdraw their services for two days to get the government’s attention.

Impact on daily transactions and business

The delay in services may disrupt your daily transactions and business activities. This strike update will also affect banking operations across the country. “It is uncommon for banks to embark on a nationwide strike as this will affect the financial stability of the economy,” said one banker.

Damilare Balogun, a staff member of a commercial bank in Nigeria, mentioned that the strike would affect everyone, including the banks. However, the strike will provide an opportunity for the banking sector to express their grievances towards the government. “Banks will be shut down nationwide based on the union directives, but banks are not just to collect money and deposits,” Balogun added.

The bank strike will cause delays in financial transactions, affecting uncleared cheques, the stock market, forex, insurance, mortgage, and daily banking activities. Automated Teller Machines (ATMs) may also be non-operational, depending on how long the banks adhere to the union directive.

The extended effect of the strike

Oga Balogun said that the effect of the strike would last more than two days. He said,  “Some people will be in denial that it cannot happen, but if it does, both bankers and customers will be affected.” During the cash scarcity earlier in 2023, many Nigerians depended on PoS operations and internet banking. As bank staff join the strike, many Nigerians will have to rely on PoS operations for their transactions.

The union’s president and other sectors joining the strike

Anthony Abakpa, the president of NUBIFIE, said the union is still in discussions with the federal government. “The warning strike will hold between Tuesday and the next day. If an agreement is not reached by this Monday midnight, we will decide what needs to be done,” he stated.

Already, some unions have advised their members to shut down operations in anticipation of the strike. The aviation sector is also likely to experience a total shutdown, as confirmed by the National Union of Air Transport Employees Association of Nigeria (NUATE) and the National Association of Aircraft Pilots and Engineers (NAAPE).

As the strike update looms, it is crucial for individuals and businesses to prepare for the potential disruptions in financial services and other sectors. The strike aims to address the economic challenges facing the country, but it comes with its own set of challenges for the everyday Nigerian.