Despite claims by governments at all levels that the country is becoming more safer and business friendly, the reverse is the case as cost of doing business, typified by rising cost of petroleum products used by most organizations have become prohibitive. Besides, activities of kidnappers and terrorists as well as lack infrastructure to assist businesses have forced most entrepreneurs to either close shops or are experiencing drastic reduction in capacity utilizationBanks’ Automated Teller Machines (ATMs) are experiencing incessant ‘downtime’ allegedly due to liquidity squeeze and prohibitive cost of diesels to power the generators, which have become the order of the day for them to survive the difficult operating environment. The only alternative for most Nigerians is the Point of Sales, (PoS) operators who are now providing ‘intermediation’ to the public at some costs. Also, most Nigerians have resorted to trading in crypto currencies, a development that may have taken away businesses from some banks. One of Nigeria’s foremost entrepreneurs and Bankers, Tony Elumelu, recently, while commenting on the incessant grid collapse and hike in diesel price, alleged that Nigeria loses 95 per cent of its crude oil to looters under President Muhammadu Buhari’s administration. This is aside from the over 80 percent out of the meager that comes to the nation’s purse, that is allegedly used to service interest on loans that are still counting. Metrobusinessnews.com gathered that banks are devising survival strategies now, following their continued losing grounds to bit coins and POS operators.
The cost of energy, especially diesel which price has gone up in recent weeks because of the Russian –Ukraine war has eaten deep into the operations of most deposit money banks and consequently, the industry is now strategizing for survival means, with the low hanging fruits, being cutting costs.
For instance, First Bank and GTBank have taken the lead in reducing the hours of operations.
In a statement made available on its official website Sunday, April 10, Firstbank said it has revised operating opening and closing hours effective today, Monday, April, 11.
Although, the bank did not adduce any reason for the action, it was gathered that the rising cost of diesel and difficult operating environments are part of the reasons.
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According to the bank: “We have revised our banking hours across all our locations. The revised opening and closing hours will be effective from Monday, 11 April 2022.” The bank said that while some of its branches will maintain the status quo, other branches will function between the hours of 8:00 am and 3:00 pm.., 8:00 am and 2:00 pm, 8:00 am and 1:00 pm and 10:00 am and 3:00 pm accordingly.
Similarly, Guaranty Trust Bank has reduced its operating closing hours from 5:00 p.m. to 4:00 p.m. over alleged incessant increase in diesel pump price. Last month, through flyers, the bank disclosed that the new development will take effect from Monday, March 21. The bank stated in the flyer announcement: We’ll like to inform you that our branches will now be opened from 8:00 am to 4:00 p.m., Monday to Friday effective Monday, 21 March 2022. The bank advised customers to consider its digital banking options for any transactions beyond its new operating hours.
It was further gathered that other deposit money banks are strategizing on how to cushion the effects of the harsh operating environment.
The strategies range from rationalization, reduction in pay to closing down some branches regarded as ‘loss centers,’ as well as banning or outsourcing the operations of dispatch riders, for those that have not done so.
These developments are coming in the wake of the incessant national grid collapses that have left the country in darkness, forcing organizations to heavily rely on diesel for their operations.
In March, the pump price of diesel hit a record high of N800 per litre, with the new price showing a significant increase from N225 per litre sold in January 2021.
Mostly used by large and medium-sized businesses to run their daily operations, the price of diesel, which is largely unregulated, has surged by over 113% in the last 14 months.
It is still uncertain as to whether the country can afford to continue to pay subsidies on petrol running into trillions of naira.
The grouse of most Nigerians, is not even the payment, but the fact that it is shrouded in secrecy as most Nigerians are yet to know the major actors and indeed, beneficiaries.
This is because, apart from Lagos, Abuja and few major state capitals, petrol has always been sold beyond the prices for which the subsidy payments should avail the poor, whose interests are said to be the primarily reason for the continued payment of the subsidies by the government.
