IIARD International Institute of Academic Research and Development

IIARD INTERNATIONAL JOURNAL OF BANKING AND FINANCE RESEARCH (IJBFR )

E-ISSN 2695-1886
P-ISSN 2672-4979
VOL. 11 NO. 2 2025
DOI: 10.56201/ijbfr.vol.11.no2.2025.pg80.95

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The Effect of Retrenchment of Staff in Deposit Money Banks on The Development of Nigeria’s Economy

Yakubu Adamu PhD & Alhaji Kawugana PhD

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Abstract

The retrenchment of staff in deposit money banks has become a growing concern in Nigeria, with significant implications for economic development. This study examines the causes, effects, and consequences of workforce downsizing in the banking sector, highlighting its impact on unemployment rates, financial inclusion, consumer spending, and overall economic stability. The research explores factors such as regulatory policies, economic downturns, technological advancements, and cost-cutting measures that contribute to job losses in the banking industry. Additionally, it assesses the ripple effects on household income, business activities, and government revenue generation. Using both qualitative and quantitative data, the study aims to provide insights into how staff retrenchment influences Nigeria’s economic trajectory and offers policy recommendations to mitigate negative consequences. The findings suggest that while retrenchment may improve bank profitability in the short term, it could lead to long-term economic instability if not properly managed.

keywords:

Retrenchment, Deposit Money Banks, Unemployment, Economic Development, Financial Inclusion, Banking Sector, Workforce Downsizing, Job Loss, Consumer Spending, Economic Stability.

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