Fuel Subsidy Removal: Nigerian Banks Announces Salary Increases

Nigerian banks have announced new salary structure for all categories of staff as Zenith Bank, Wema Bank, and GTBank are among the financial institutions to implement new salaries for their workforce

The banks said the move became necessary due to the current economic realities in Nigeria

To reduce the biting effect of inflation caused primarily by the removal of subsidies from petrol, Nigerian banks have adjusted their employees’ salaries and wages, thus prioritising the welfare of their workforce.

According to Legit, recently Wema Bank raised the salaries of its employees to alleviate the brutal effect of fuel subsidy removal, citing economic realities as the reason.

The bank said its vision extends beyond its bottom line, and the salary adjustment is expected to have a positive ripple effect in the industry, a statement by the bank’s divisional head, people, brand, and culture said.

Guaranty Holding Company, the parent firm of Guarantee Trust Bank, announced a salary increase on June 18, 2023, for its junior and contract staff to enable them to cope with the high cost of living.

According to findings, the salary increase became effective from July 1, with cleaners earning between ₦70,000 and ₦80,000 and drivers making between ₦140,000 and ₦150,000.

Zenith Bank announced company-wide salary increases for all staff categories to facilitate Nigeria’s challenging economic climate.

Zenith Bank’s new salary structure shows that drivers working in the bank now earn about ₦120,000, while cleaners earn about ₦80,000 as the raise was both for contract and permanent staff of the financial institution.

UBA joins the fray

United Bank for Africa (UBA) affirmed its commitment to prioritise staff welfare and their families, leading to its Board of Directors announcing on Saturday, July 29, 2023, the implementation of a cost of living adjustments for its staff effective immediately.

The bank said it has monitored events in the past few months and their effects on its staff and recorgnise the need to address the challenges.

The bank said: “It is interesting to note that even when the bank had previously implemented cost of living adjustment for staff on October 1, 2021 and more recently on April 1, 2023, the persistent economic challenges faced by employees and the broader society as a whole, informed the unanimous decision to again implement another adjustment.

“Also in line with its commitment to promote staff for excellent performance every year, UBA had in March 2023, announced the promotion of over 1,500 staff across Africa, and had also elevated close to 1,000 staff in 2022.”

“This move will serve to alleviate the financial burdens faced by our staff and their families, reinforcing the bank’s position as a responsible and caring employer.”

ThisDay reports that the bank’s management thanked the staff and their dedication to hard work, saying it recorgnises their sacrifices and is committed to easing the pains of the subsidy removal.

Subsidy removal causes widespread hardship for Nigerians The removal of subsidies from petrol had an overall effect on Nigerians and their cost of living as prices of items, especially food and transportation, skyrocketed.

Also, the policy saw petrol marketers hike prices which caused massive increases in petrol prices.

Employees now pay double for transportation to and from work, necessitating salary increases for workers across all spectrums of the Nigerian labour force.

Fidelity Bank also announced bonuses for staff to reduce the burden of hardship on staff.

Ecobank emerges highest-paying bank in Nigeria BusinessDay reports that in 2022, Ecobank was the highest-paying Nigerian bank. The pan-African bank recorded ₦54.83 billion in personal costs in the first quarter of 2023, representing a 16.9% increase from ₦46.9 billion in 2022.

Personal costs contain the bank’s expenditures concerning staff remuneration and welfare within a specific financial reporting timeframe.

Access Holdings recorded ₦33.57 billion in personnel costs in the first quarter of 2023, a 14.8% increase from ₦29.25 billion in Q1 of 2022.

UBA’s employees’ benefits and expenses increased to ₦31.26 billion in Q1 of 2023, an increase of 22.2% from ₦25.58 billion in the first quarter of 2022.

First Bank’s staff costs stood at ₦31.3 billion in the first quarter of 2022, a spike of 22.2% from ₦25.62 billion in Q1 of 2023.

Stanbic IBTC’s personnel costs amounted to ₦13.98 billion in Q1 of 2023, representing a 13% increase from ₦12.38 billion in the first quarter of 2022.

GTB, Zenith head list of Nigerian banks with best-paid executives at monthly salary average of ₦8.4m.

Banking sector, especially commercial banks, is one of Nigeria’s most profitable sectors, generating billions in profits.

The chief executive/managing director, the highest-ranking executive in the organisation, is in charge of making the best corporate choices, overseeing the execution of the organisation’s corporate strategy, and, most importantly, maximising the shareholders’ return.

Thus, these enormous responsibilities also come with considerable executive compensation for their service, making them ostensibly the highest-ranking staff of the bank.