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ASSBIFI To Picket Heritage Bank Over Staff Disengagement

by Andrew Ojiezel
2 years ago
in Lead-In
Reading Time: 2 mins read
ASSBIFI
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The Association of Senior Staff of Banks, Insurance and Financial Institutions (ASSBIFI) has threatened to mobilise all its affiliate trade unions and Nigerian workers against Heritage Bank for the wrongful disengagement of over 30 members of the association, including a principal national officer.

The president, Comrade Olusoji Oluwole,  who made this known at a press conference, noted that the picketing is based on the wrongful retrenchment of workers without following due process by the management.

This is even as Olusoji lamented that Heritage Bank refused to settle severance benefits of the sacked  workers who are members of the association since May 2023.

“We have engaged the management of the bank on several occasions to demand justice for the vulnerable Nigerian workers whose employments were wrongly terminated, but the bank’s management insisted that the workers were sacked based on their company policy, without negotiation with the union as provided by the law,” he said.

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Oluwole alleged that the bank refused to produce its policy and details of the claimed payments and settlement of severance benefits paid to the disengaged employees over three months of requests.

Oluwole maintained that the employees had served the bank for 25 years and for no tangible reasons, were asked to go home empty-handed.

“This is exploitation and injustice of the worst order. It is wrong, unjust, and insensitive, and we strongly object to this slavery. We are now forced to assume that the management of Heritage Bank does not have the financial capacity to settle the entitlements of its employees.

“It also speaks volumes about the safety of several Nigerian workers in affiliated unions who have their salaries paid into this, and others whose savings are domiciled in the bank,” said Oluwole.

According to him,  “ASSBIFI shall not hesitate to deploy all its networks and contacts to mobilise affiliate trade unions and Nigerian workers towards protecting the rights and privileges of our members in this institution.”

Efforts to speak with the management proved abortive as at the time of filing this story.

 

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Lead-In

Providus Bank has acquired the 34% equity stake held by the Asset Management Corporation of Nigeria (AMCON) in Unity Bank Plc, marking a decisive step toward the long-anticipated merger between the two financial institutions. The deal, valued at about N6.5 billion, saw AMCON offload its decade-old holding in Unity Bank to Providus at a price of N3.18 per share, representing a 110per cent premium to the bank’s prevailing market value of N1.50 on the Nigerian Exchange. Industry analysts said the transaction signals a turning point for Unity Bank, which has faced prolonged struggles with weak capitalisation, rising non-performing loans, and declining market relevance. By transferring AMCON’s strategic stake, they noted, Providus has strengthened its hand as it pushes for regulatory approvals to consummate a full merger. AMCON acquired its Unity Bank stake during the 2011–2012 banking sector clean-up after the global financial crisis exposed balance sheet vulnerabilities across second-tier lenders. Its divestment, according to banking sources, underscores the corporation’s gradual exit from long-held equity positions as it focuses on recovering toxic assets and reducing its systemic footprint. “AMCON’s sale to Providus is significant not just for Unity Bank but for the entire financial system,” said a Lagos-based investment banker. “It shows the government is serious about cleaning up legacy interventions while paving the way for stronger private-sector-led banks.” Unity Bank shareholders are set to benefit from the deal’s pricing structure. At N3.18 per share, Providus’ offer more than doubles the bank’s trading value, giving investors a rare premium exit in a market where bank stocks often trade at steep discounts. For minority shareholders, the merger if approvedcould also unlock value by combining Providus’ niche strength in corporate banking and digital services with Unity Bank’s broader retail and SME base. Providus, one of Nigeria’s fastest-growing mid-tier lenders, is widely seen as using the Unity Bank deal to accelerate its ambition of achieving national bank status. By absorbing Unity’s branch network and customer base, the lender would scale its operations beyond its current limited licence, positioning itself to compete more aggressively with tier-one institutions. “The synergies are clear,” said a senior Unity Bank executive familiar with the talks. “Providus brings balance sheet strength and digital innovation, while Unity offers reach and brand equity, especially in northern Nigeria.” Following AMCON’s divestment, the proposed merger will be subject to approval from the Central Bank of Nigeria (CBN), the Securities and Exchange Commission (SEC), and Unity Bank shareholders. Both banks are expected to present a detailed merger scheme in the coming months, outlining share swap ratios, post-merger governance, and capital plans. Market watchers say regulatory scrutiny will focus on whether the combined entity meets CBN’s revised recapitalisation thresholds, which mandate higher minimum capital bases for Nigerian banks. The Providus–Unity transaction comes amid a wave of consolidation moves triggered by the CBN’s ongoing recapitalisation drive. Several lenders are exploring mergers, acquisitions, or fresh capital injections to meet compliance deadlines ahead of 2026. “This is the first big-ticket transaction of the recapitalisation era,” said a financial markets analyst. “It won’t be the last.”

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