The Central Bank of The Gambia (CBG) has directed commercial banks operating in the country, including subsidiaries of major Nigerian lenders, to phase out non-Gambian employees who are not covered by approved expatriate quotas and replace them with qualified Gambian nationals.
The directive, which sets a year-end deadline for compliance, affects banks including FirstBank, Access Bank, Zenith Bank, Ecobank and Guaranty Trust Bank, among other financial institutions operating in the West African country.
The regulator said the affected banks must implement the replacement process in phases, while putting in place succession arrangements, transferring skills and knowledge to Gambian employees and ensuring that the transition does not disrupt banking operations.
The CBG’s position was contained in a letter addressed to managing directors of commercial banks operating in The Gambia and signed by its Second Deputy Governor, Ousman Mendy.
According to the regulator, the directive followed discussions with bank managing directors in August over the employment of non-Gambian workers in the country’s banking sector.
The CBG subsequently conducted an industry-wide study which, it said, found a relatively high number of non-Gambian employees working in banks in addition to workers formally recognised as expatriate staff.
The central bank said the practice was inconsistent with provisions of The Gambia’s Labour Act 2023 and Guideline 9 governing the employment of expatriate personnel in the banking industry.
The regulator stated that banks must ensure full compliance with the country’s labour laws and its guidelines on expatriate employment.
“A recent industry study conducted by the Bank revealed that a relatively high number of non-Gambians are employed by banks, in addition to recognised expatriate staff,” the CBG said in the communication.
It added that the practice was in violation of provisions of the Labour Act 2023 and was not in line with Guideline 9 on expatriate staff.
Under the new directive, banks are expected to identify qualified Gambian nationals who can progressively take over positions currently occupied by non-Gambian workers outside approved expatriate arrangements.
The CBG also instructed lenders to establish clear succession plans and ensure effective transfer of skills and institutional knowledge as the localisation process takes place.
The regulator stressed that the process must be managed in a manner that safeguards the continuity of banking services and prevents the loss of critical institutional knowledge.
The directive is not, however, an outright prohibition on the employment of expatriates in The Gambia. Rather, expatriate employment remains subject to regulatory approval and applicable quotas.
The country’s Labour Act provides for the use of expatriate workers in circumstances where the necessary expertise is not sufficiently available locally, while also requiring employers with approved expatriate positions to facilitate the development of Gambian understudies.
The legal framework is intended to promote the transfer of knowledge, technology and skills to local employees and increase the availability of qualified Gambian workers for positions that may initially require expatriate expertise.
The law also provides penalties for employers that engage expatriates without the required quota clearance or fail to meet specified requirements relating to local understudies.
The CBG’s latest directive therefore requires banks to review their existing workforce structures, particularly positions occupied by non-Gambian employees who are not covered by recognised expatriate arrangements.
For Nigerian banking groups with subsidiaries in The Gambia, the measure could require adjustments to staffing and succession arrangements as the lenders work towards the regulatory deadline.
Nigerian banks have maintained a significant presence across several African markets, with their regional subsidiaries often drawing on personnel and expertise from their Nigerian parent institutions.
The Gambian directive is consequently expected to place greater emphasis on developing and deploying local talent within the country’s banking industry, particularly in positions where the regulator considers the necessary skills to be available domestically.
The CBG, however, did not specifically accuse any of the Nigerian-owned banks named in reports of individual breaches of the law.
The directive applies broadly to commercial banks operating in The Gambia and requires lenders to align their employment practices with existing labour and expatriate-staff regulations.
Banks have also been instructed to ensure that the localisation process does not undermine the stability or day-to-day operations of their institutions.
The development comes as regulators across African markets continue to place greater emphasis on local capacity development, employment and skills transfer, particularly in sectors where multinational and regional companies have historically relied on expatriate personnel.
For the affected banks, compliance will require a review of expatriate quotas, identification of positions held by non-Gambian employees, assessment of available local talent and the implementation of structured succession and training programmes before the year-end deadline.