By Yakubu LAAH InvestAdvocate
Lagos (INVESTADVOCATE)-The Central Bank of Nigeria (CBN) on Wednesday said it will henceforth penalize banks for proscribing unionism.
This was contained in a circular dated July 10, 2014 with reference number BSD/DIR/GEN/LAB/07/19 and signed by Tokunbo martins, director of banking supervision and posted on the CBN’s website.
The Nigeria’s Central Bank said it has come to its notice that some banks, discount houses and development finance institutions have prevented their staff from exercising their fundamental human rights, but are expected to ensure that their employees had freedom of association.
The circular read thus: “It has come to the notice of the Central Bank of Nigeria that banks, discount houses and development finance institutions are not in full compliance with the spirit and letter of Principle Three of the Nigerian Sustainable Banking Principle on ‘human rights’ which states that ‘we will respect human rights in our business operations and business activities’.”
Martins in the circular affirmed that a sustainable banking approach recognises and respects human and labour rights in bank’s operation and other business activities.
She said banks’ approach to human rights should be consistent with promoting the requirements of the Nigerian constitution, United Nations Declaration on Human Rights and other international treaties to which Nigeria is a signatory.
“Key policies and requirements should include recognition of employees’ entitlement to safe and fair labour conditions and to exercise collective and individual rights to associate and speak freely, as allowed by national law,” the director noted.
“Consequently, banks, discount houses, and development finance institutions are advised to note that their staff/employees are at liberty to freely associate in furtherance of their rights as allowed by national regulations and laws, and international conventions and treaties Nigeria is a signatory to.”
Consequently, the CBN declared that, “It shall constitute an infraction, which will attract sanctions, where a bank, discount house, or development finance institution is found in any manner to hinder or prevent its staff/employees from exercising their rights to free association, as required under Principle Three and other extant regulations and laws.”
