The continuous weakening of the Naira against the Dollar in recent times is hitting banks below the belt and they would have no choice than to lay off some staff and cut some of their expenses, Daily Trust says.

President of the Association of Senior Staff of Banks, Insurance and Financial Institution (ASSBIFI), Comrade Sunday Salako said banks and other financial institutions in the country are not immune from the shocks created by the Naira fall.

“There is no way the Naira fall in the country will not affect the banks. Most of the banks in Nigeria also borrowed in foreign denominated currencies. They have to pay more in Naira now to service the loan because of the fall in Naira value. That will have a toll on the balance sheets of the banks.

Furthermore, policies introduced by the Central Bank of Nigeria, CBN, to ease pressure on the Naira are reportedly hostile to banks as they reduce revenue generated through foreign exchange.

 However, the policies aren't working as the Naira continues to weaken against the dollar. Recently the Naira recorded it's biggest monthly fall in over 5 years, and things don't seem about to change in the near future.

In order to survive, banks would have to cut operating costs which will involve laying off some workers. With the magnitude and rate at which the Naira is slipping, it could be a massive sacking.