Quick Read: Zenith Bank has announced a 20% salary increase for its nearly 10,000 employees, effective January 2025. This move is part of a broader trend in the Nigerian banking industry to retain top talent and address the challenges of rising inflation.
Salary Increase Details
In order to continue to motivate its staff and improve service delivery, Zenith Bank implemented a salary increment of between 20% – 30% involving all staff effective January 2025. The Bank also promoted well over 4,000 staff on January 17, 2025. This exercise, which is still ongoing, has been described as one that involves the highest number of staff in one promotion in the industry.”
Industry-Wide Trends
This salary adjustment follows similar actions taken by other banks, including GTCO, Union Bank, First Bank, and Sterling Bank, over the past six months. These changes reflect the pressure on commercial banks to keep their workforce motivated amidst Nigeria’s high inflation and to prevent talent poaching by competitors.
Impact on Employee Salaries
The raise significantly impacts employees’ take-home pay. For example, executive trainees (ETs), who previously earned ₦245,000 monthly, will now receive ₦294,000. Assistant banking officers (ABOs) will see their salaries increase from ₦609,000 to ₦730,800, while banking officers (BOs) will move from ₦800,000 to ₦960,000.
Financial Implications for Zenith Bank
Zenith Bank’s wage bill will rise as a result of this adjustment. As of September 2024, the bank’s personnel expenses amounted to ₦97.496 billion, accounting for 22.86% of its total expenses during that period. Among tier-1 commercial banks, Zenith Bank has the second-lowest wage bill, with GTBank leading in cost efficiency.
Addressing Workforce Challenges
The banking industry’s response to economic challenges has led several tier-1 and tier-2 banks to review their compensation structures. Competitors like Guaranty Trust Bank, Union Bank, and Sterling Bank have also implemented salary adjustments in recent months. While percentages vary, these measures aim to address inflationary pressures and reduce employee attrition, particularly as skilled professionals increasingly seek opportunities abroad.
Zenith Bank’s efforts underscore the ongoing challenges in maintaining a motivated and stable workforce in Nigeria’s banking sector.
