Legality Of Setting Deposit Target For Employees As A Condition For The Continuation Of Their Employment By Banks And Other Financial Institutions.

By Mustapha Babalola Toheeb

It’s a common trend in Nigeria to see banks setting certain deposit targets for their employees and their ability to meet up with the above-mentioned targets will determine whether they will still be on the payroll of the banks or not.

This practice and the pressure to meet up has driven some bank employees to resort to many methods, tactics that comprised their ideals and principles. Some even resort to offering sex to potential bank customers in order to meet up with this audacious targets.

Moving to the crux of this article which is to determine whether the practice of setting targets to employees as a condition for the continuation of their employment by banks is legal or not.

The National Industrial Court in the case of Miss Chinonye Amanze v Union Bank of Nigeria Plc (2018) NICN/LA/424/2018, the court held that:

“… the practice where an employee is given deposit target by a bank or any other financial institution as a condition for his continuing in the employment by banks and any other organization is an unfair labour practice and must be struck down. That practice is hereby outlawed.”

The effect and significance of this court verdict is that our banks and other financial institutions has been compelled to stop giving deposit targets to employee as a condition for the employee’s continuing employment as the practice has been declared outlawed which ultimately signifies that it’s illegal.

Bankers, lawyers, stakeholders in the banking sector are urged to take cognizance of this court verdict.

God bless Nigeria.

Mustapha Babalola Toheeb is an Undergraduate Intern at OAKE Legal and a penultimate year law student of Bayero University Kano.

He can be reached via his gmail; toheebmustapha15@gmail.com