Gambia’s hiring rules force Nigerian banks to reshuffle staff

By Chinwendu Obienyi

Nigerian banks operating in The Gambia may have to replace some of their expatriate workers with Gambians as the country tightens rules on the employment of foreign staff.

The Central Bank of The Gambia (CBG) has ordered all 11 commercial banks in the country to replace non-Gambian workers employed outside approved expatriate quotas with qualified Gambians by December 31, 2026.

The directive, contained in a September 16 circular signed by the CBG’s Second Deputy Governor, Dr Paul J. Mendy, also requires banks to ensure that affected foreign workers transfer their skills to local employees before leaving their positions.

The move could affect Nigerian banking groups with subsidiaries in The Gambia, including Access Bank, FirstBank, Guaranty Trust Bank and Zenith Bank.

Other foreign and regional banks operating in the country include Ecobank, BSIC and Bloom Bank Africa.

The CBG said its decision followed an industry study which found a “relatively high number” of non-Gambians working in banks outside officially approved expatriate positions.

According to the regulator, the practice violates the Labour Act 2023 and its guidelines on the employment of expatriates.

The Labour Act provides for a fine of at least 500,000 dalasi for employers convicted of hiring foreign workers without the required quota approval.

The new rule means banks now have to review their workforce, identify foreign employees affected by the directive and begin preparing Gambian workers to take over their duties.

For Nigerian banks, one of the immediate concerns will be the cost of the exercise.

Banks may need to recruit more Gambians, train existing employees for higher responsibilities and move some workers between departments to fill gaps created by the departure of expatriates.

The impact may be greater in areas where Nigerian banks rely on experienced expatriate staff for specialist or management roles.

Where qualified Gambians are readily available, the transition could be smoother. But where there are shortages of workers with the required skills, banks could face temporary operational challenges as they train replacements.

The development could also affect the way Nigerian banks expand across West Africa.

Nigerian lenders have traditionally moved experienced employees from their headquarters into new markets to help establish and manage their foreign operations. With countries placing greater emphasis on local employment, banks may now need to build stronger local management teams from the start.

This means more spending on local recruitment, training and leadership development, while banks will also have to strengthen their monitoring of expatriate quotas.

There is also a compliance risk for lenders that fail to meet the new requirements.

Apart from possible penalties under Gambian law, failure to comply could bring closer attention from regulators and create concerns among customers if staff changes disrupt banking services.

However, the CBG has not stated how many workers are affected by the directive or whether exemptions will be considered for highly specialised jobs where qualified Gambians are not available.

For Nigerian banks, the deadline provides limited time to reorganise affected operations, transfer knowledge and ensure that customers continue to receive uninterrupted services.

The development also signals a stronger push for local employment in The Gambia’s banking industry and could influence how foreign banks manage their workforce in other West African markets.

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