Nigeria challenges Gambia’s directive to replace foreign bank workers by December

ABUJA/BANJUL, November 3, 2026 — Nigeria has raised concerns over a directive issued by the Central Bank of The Gambia requiring commercial banks to replace existing foreign employees with qualified Gambian nationals by December 31, escalating tensions over labour policies and cross-border investment in West Africa.

In a letter dated September 16, 2026, addressed to managing directors of all banks, the Gambian central bank said an industry study had found that a relatively high number of non-Gambians were employed in the banking sector, in addition to recognised expatriate staff.

The regulator said the employment practices violated provisions of the country’s Labour Act 2023 and were inconsistent with its guidelines governing expatriate employment.

The directive, signed by Dr. Paul J. Mendy, the central bank’s second deputy governor, instructed financial institutions to adopt a phased approach to replacing existing non-Gambian employees, with provisions for skills transfer and operational continuity.

The transition must be completed by December 31, 2026, according to the letter, which followed a meeting between the regulator and bank managing directors on August 27.

The move has drawn criticism from Abike Dabiri-Erewa, chairperson and chief executive of the Nigerians in Diaspora Commission (NiDCOM), who warned that the policy could threaten the employment of Nigerian banking professionals and weaken confidence in regional investment arrangements.

In a statement published on X on Tuesday, Dabiri-Erewa described the reported directive as “deeply worrisome”, urging Gambian authorities to reconsider its implementation.

“While NiDCOM recognises Gambia’s right to promote local employment and develop its workforce, such policies must be implemented fairly and in a manner that respects existing employment arrangements, legitimate work authorisations and the principles of African solidarity and regional integration,” she said.

According to Dabiri-Erewa, 57 Nigerian professionals working for four Nigerian-origin banks operating in The Gambia could be affected by the directive.

She said the employees reportedly held valid residency and work permits and had made significant contributions to the country’s banking industry.

The Nigerian official also highlighted the economic importance of the four banks, citing figures that suggest they collectively account for a substantial share of The Gambia’s financial system.

According to the figures she provided, the institutions hold approximately 37.2 per cent of total banking industry deposits, equivalent to 35.3bn Gambian dalasi, and 32.6 per cent of outstanding loans, valued at 7.67bn dalasi.

The banks also account for about 37 per cent of industry assets, worth 44.78bn dalasi, and approximately 34.5 per cent of investments in central bank bonds, she said.

Dabiri-Erewa further claimed that the institutions provided 90 per cent of the funding supporting the operations of the National Water and Electricity Company (NAWEC), highlighting their wider role in the Gambian economy.

The figures were presented by the Nigerian official and could not be independently verified.

The dispute raises broader questions about the balance between national employment policies and the regional economic integration commitments of the Economic Community of West African States (ECOWAS).

Both Nigeria and The Gambia are members of the 15-country regional bloc, whose framework promotes the movement of people, trade and investment among member states.

Although ECOWAS agreements support regional mobility and economic cooperation, member countries retain authority over domestic labour regulation and employment requirements. The extent to which the Gambian directive may conflict with regional obligations would depend on its implementation and the applicable legal provisions.

Dabiri-Erewa argued that the measure risked undermining the principles underpinning regional economic cooperation.

“It is contradictory to encourage African investment, regional economic cooperation and the free movement of people while adopting employment measures that could lead to the indiscriminate displacement of qualified African professionals,” she said.

She called on the Gambian central bank to reverse what she described as a blanket replacement directive and begin discussions with the Nigerian High Commission in Banjul, affected banks and other stakeholders.

The Nigerian official also urged Gambian authorities to uphold the spirit of ECOWAS integration and preserve the longstanding relationship between the two countries.

The Gambian central bank’s letter, however, framed the policy as a compliance measure intended to address employment practices it considered inconsistent with national legislation and existing expatriate staffing guidelines.

It also called for arrangements to ensure skills transfer and continuity of banking operations during the transition.

The directive does not specify how many foreign workers across the entire banking industry would be affected, nor does it identify the banks required to replace employees.

It remains unclear whether exemptions would be available for specialised positions or employees holding valid work permits.

The controversy comes as African governments seek to increase local participation in key economic sectors while attracting foreign capital and specialist expertise.

For Nigerian financial institutions operating in The Gambia, the outcome could have implications for staffing, regulatory compliance and the management of cross-border operations.

Neither the supplied central bank letter nor Dabiri-Erewa’s statement establishes whether formal diplomatic discussions have begun or whether Gambian authorities are considering amendments to the directive.

For now, the December 31 deadline remains the date specified in the central bank’s letter, leaving affected banks less than two months to complete the required transition.