In Nigeria’s fast-paced banking industry, the divide between contract and permanent staff is more than just a matter of employment status — it’s a difference that affects pay, job security, career growth, and even mental well-being.
As banks continue to restructure, outsource roles, and automate operations, the question becomes more relevant than ever:
Who bears the bigger burden — contract or permanent staff?
Let’s dive deep into the realities of both sides of the coin, and what it means for professionals building a career in Nigerian banking.
Understanding the Two Categories
Who Are Contract Staff?
Contract staff are typically hired through outsourcing firms or third-party HR companies. They often serve in roles such as customer service, tellers, sales agents, and operations support.
Employment Type: Temporary, usually renewable yearly.
Employer: Not directly employed by the bank but by a recruitment agency.
Benefits: Limited — often excludes pensions, bonuses, and health insurance.
Who Are Permanent Staff?
Permanent staff are employed directly by the bank and enjoy full employment benefits.
Employment Type: Long-term, with promotion and growth opportunities.
Employer: The bank itself.
Benefits: Pension, housing allowance, bonuses, health insurance, and more.
The Burden of Being a Contract Staff
For many Nigerians, contract roles are the entry point into banking — but they come with heavy baggage.
1. Lower Pay
Contract staff in banks often earn between ₦45,000 to ₦100,000 monthly, while their permanent counterparts earn double or triple that amount — even in the same department.
2. No Job Security
Contracts are usually short-term and can be terminated without much notice or severance. This instability creates anxiety and limits long-term financial planning.
3. Limited Growth
Promotion opportunities are rare. Even after years of service, contract workers are often overlooked for internal roles reserved for permanent staff.
4. Higher Pressure
Ironically, contract workers are given strict KPIs — especially in sales roles — and failure to meet targets can lead to non-renewal or immediate termination.
5. Social Divide
Contract staff frequently report feelings of exclusion, with separate ID cards, lunch areas, and even restrictions on internal emails or meetings.
Do Permanent Staff Have It Easy?
While permanent staff enjoy more stability and benefits, their roles aren’t without pressure.
1. Longer Hours
Many permanent bank staff work beyond standard hours, especially in management, compliance, or tech-related departments.
2. Bigger Targets
With more responsibility comes higher expectations — including sales quotas, customer satisfaction metrics, and audit compliance.
3. Performance-Based Pressure
Bonuses, promotions, and even retention can hinge on quarterly performance reviews. This adds pressure to constantly overperform.
4. Job Cuts in Restructuring
As banks automate and adopt fintech solutions, even permanent staff face job insecurity during layoffs or mergers.
So, Who Bears the Bigger Burden?
In terms of vulnerability, financial strain, and limited rights — contract staff bear the heavier burden.
While permanent employees face performance pressure, they still enjoy:
Better salaries
Access to loans
Pension plans
Job progression
Legal protection under Nigerian Labour Law
For contract staff, the stress is compounded by low income, lack of security, and limited career mobility.
Why This Matters
The increasing reliance on contract staff raises critical questions:
Is the banking industry becoming exploitative?
Are talented individuals being underutilized?
What long-term effects does this have on employee morale and service quality?
Banks may reduce short-term costs with contract hires, but it often results in high turnover, poor employee engagement, and loss of trust — both internally and with customers.
What Can Be Done?
For Banks:
Provide fair wages and better welfare for contract workers.
Create conversion pathways for high-performing contract staff.
Reduce the divide between contract and permanent teams.
For Job Seekers:
Know your rights and the details of your employment contract.
Build in-demand skills (digital, sales, customer service) to improve mobility.
Use contract roles as a stepping stone — but always aim to level up.
The banking sector in Nigeria is evolving — but the treatment of workers shouldn’t be left behind.
As conversations around fair labor practices and equal opportunities grow, it’s time to shine a light on the real experiences of those powering Nigeria’s financial institutions — from the top floors to the teller counters.
Contract or permanent — every staff member deserves dignity, fair compensation, and a chance to grow.
