The federal government has directed banks, insurance and financial institutions to suspend the ongoing retrenchment in the sector.

Chris Ngige, minister of labour and employment, gave the directive in Abuja on Friday, saying his office had received several complaints from those affected by the development.

Ngige said any action taken in that regard would be seen as illegal, saying a meeting on the way forward would be held on July 2.

“Following spate of petitions and complaints from stakeholders in the banking, insurance and financial institutions, I hereby direct the suspension of the on-going retrenchment pending the outcome of the conciliatory meetings in the industry,” he said in a statement.

“This is as a result of the apprehension by my office of the various disputes in the sector in accordance and in compliance with the provisions of the labour laws of Nigeria.

“In this wise, all the retrenchments and redundancies done in the last four months and all proposed ones should be put on hold pending the outcome of the proposed stakeholders’ summit for the banking, insurance and financial institutions’ employers and employees, slated for July 2.”

The statement added that the continued retrenchment and redundancy by the sector were jeopardising the outcome of the reconciliatory and mediatory processes undertaken by the ministry.

— OkoroChukwu Ikechukwu ( Correspondent)