Union Bank of Nigeria has implemented a 40% salary increase for its employees to mitigate the financial stress caused by the rising cost of living.
The adjustment, effective from 1 November 2024, covers over 2,000 staff members, including executive trainees, general managers, and outsourced associates.
An internal memo revealed that employees would receive arrears for November alongside their December 2024 pay.
The revised structure now sees entry-level executive trainees earning ₦364,000 monthly, up from ₦260,000, while senior banking officers will receive an annual gross salary of ₦20 million.
This is the third pay adjustment by the bank since 2022, reiterating a consistent focus on supporting its workforce as the economic challenges increase.
Not just Union Bank, but some other Nigerian banks have also responded to the economic stresses. In recent months, other financial institutions such as Guaranty Trust Bank (GTBank) and Sterling Bank have introduced similar measures.
GTBank increased salaries by 40% in September 2024, while Sterling Bank began paying employees a cost-of-living adjustment in August.
The Nigerian economy has been greatly impacted by currency devaluation and skyrocketing inflation, with consumer spending under pressure.
Union Bank acknowledged these challenges in its memo, stating, “The recent adjustments to our compensation and benefits package strongly reflect our commitment to investing in our employees and aligning with industry standards.”
Union Bank spent ₦34 billion on personnel expenses in 2023, representing a 27% increase from the previous year. With this new adjustment, the bank is projected to spend ₦47.6 billion on personnel in 2024.
This salary increase can also be connected to the banks’ goal to remain competitive, attract talent, and retain staff. GTBank’s recent salary increase, for instance, included all 3,300 employees, from junior staff to contract workers.
The bank also raised wages for cleaners and drivers, who now earn between ₦70,000 and ₦150,000 monthly.
Nigeria’s current economy, shaped by President Tinubu’s reforms—including the removal of fuel subsidies and currency devaluations—has worsened financial difficulties for citizens, with inflation rates climbing to 33% and the naira depreciating by nearly 70%.
