THE NIGERIAN JOURNAL OF SOCIOLOGY AND ANTHROPOLOGY
Volume 15, No. 2 (2017)
Implications of Retrenchment in the Banking Industry for Economic Growth: A Study of Selected Commercial Banks in Uyo, Nigeria
Ubong Nnana Umanah1, Aniefiok S. Ukommi1 & Ambrose Osita Agwu2
1Department of Sociology and Anthropology University of Uyo, Uyo Akwa Ibom State, Nigeria
2General Studies Department Abia State University, Uturu, Abia State, Nigeria
The study identifies and analyses the sociological implications of workers’ retrenchment in the banking industry on Nigeria’s economic growth using selected commercial banks in Uyo as reference. The paper argues that banking reforms in terms of rationalization, capitalization and merger have negative effects on economic growth (rather than enhancing the development) of any country. Data were gathered from selected commercial banks in Uyo, Akwa Ibom State of Nigeria through the use of questionnaires and from secondary sources such as statistical publications and other relevant materials. Findings show that retrenchment of workers in the banking industry instead of promoting growth resulted in loss of depositors’ confidence in the banking sector which also brought about loss of funds in the banking system and therefore stunt economic growth. The study recommends that training and retraining of workers should be given priority attention in the industry to improve their capacity for new demands.
Keywords: Economic growth, retrenchment, banking reforms and commercial banks