Zenith Bank has come under fire over ₦67.3bn outsourcing spend amid rising exploitation of contract staff.
Despite posting impressive profits and aggressively expanding its digital infrastructure, Zenith Bank Plc is facing growing criticism over its treatment of contract staff, following revelations that it spent a staggering ₦67.3 billion on outsourcing in 2024 alone.
The figure, primarily linked to IT infrastructure and service providers, marks a sharp increase from previous years and reflects the bank’s heavy investment in projects such as the migration to Finastra’s Flexcube core banking platform. But behind the glossy digital upgrades lies a grim reality for thousands of outsourced workers who continue to bear the brunt of exploitation and job insecurity within the bank’s ecosystem.
Rising Profits, Falling Standards
Zenith Bank’s record spending on outsourced services stands in stark contrast to the poor working conditions reported by its contract staff, many of whom perform critical, customer-facing roles under precarious arrangements.
Investigations show that contract workers at Zenith are routinely underpaid, overworked, and excluded from basic employment benefits. Despite occupying key roles such as tellers, sales agents, and account managers, these staff are often paid less than half the salaries of their permanent counterparts, sometimes as little as ₦100,000 monthly, compared to ₦250,000–₦300,000 earned by full-time employees performing identical duties.
A Lagos-based contract staff who spoke under anonymity described the situation as “modern-day labour exploitation,” noting that while he met customer targets and managed critical accounts, he was denied access to pensions, medical cover, and promotion opportunities.
“The bank pays twice my salary to the outsourcing firm, but I only see a fraction of it. It’s demoralising,” he said.
A System Designed for Corporate Convenience
Zenith’s outsourcing strategy, touted by management as a cost-saving measure effectively allows the bank to sidestep regulatory obligations and shrink its payroll liabilities. Industry data suggests banks like Zenith save up to 40% on labour costs by delegating core functions to third-party vendors. While legal on paper, critics say the practice is exploitative and undermines the dignity of labour.
A 2023 report by the Chartered Institute of Bankers of Nigeria (CIBN) revealed that 65% of Nigeria’s banking workforce is composed of contract staff, most of whom are employed via outsourcing firms that offer little to no labour protections.
These workers are excluded from internal training programmes, denied promotion opportunities, and often treated as expendable, creating a de facto two-tier workforce that thrives on inequality.
“Contract staff are not just underpaid; they are invisible in the system,” said a human resources consultant familiar with the banking sector. “They’re not covered by HR policies, don’t get bonuses, and can be terminated without warning or recourse.”
Regulatory Indifference, Union Frustration
Although Nigeria’s labour laws are supposed to protect all workers, regardless of contract status but regulatory enforcement remains virtually nonexistent. The Nigerian Union of Banks, Insurance and Financial Institutions Employees (NUBIFIE) has repeatedly called for reforms, including:
- Regular review of outsourced workers’ conditions
- Union participation in disciplinary processes
- Mandated access to benefits and promotion pathways
However, according to NUBIFIE’s Deputy General Secretary, Mr. Shola Aboderin, “Implementation remains a major hurdle. We wrote to the Minister of Labour in May, requesting urgent dialogue on enforcement, but we’ve received no response.”
Human Cost of Digital Ambition
While Zenith Bank reaps the rewards of its massive digital investments, labour analysts warn that continued reliance on exploitative outsourcing models could erode employee morale, invite public backlash, and expose the bank to reputational and legal risks.
“Zenith cannot continue to parade record profits and high-tech platforms while treating thousands of workers like disposable tools,” said a labour advocate. “There is no fintech breakthrough that justifies dehumanisation.”
With inflation, electricity tariffs, and transportation costs rising nationwide, the plight of outsourced bank workers is becoming increasingly untenable. Calls are growing louder for Zenith Bank and regulators to end what many describe as corporate-sanctioned labour abuse hiding in plain sight.
Bottom Line: Zenith Bank’s ₦67.3 billion outsourcing spree underscores its technological ambitions, but beneath the surface, it’s fuelling a deeply troubling labour crisis. Until meaningful reforms are implemented, the bank’s digital success will remain tarnished by the exploitation of its most vulnerable workers.