NIGERIAN BANKS FACE RISING COSTS AS WAGE BILLS SURGE AMID INFLATION
Summary Breakdown:
Significant Wage Growth: Nigerian banks have seen their wage and salary costs nearly double, reaching N615.8 billion in H1 2024, up by 96% from N314.4 billion in H1 2023. This surge is attributed to soaring inflation and new staff hires.
Top Banks and Wage Bills:
Access Holdings leads with N151.5 billion in wage expenses, a 145% increase from N61.9 billion in H1 2023.
First Bank follows closely with N134.2 billion in wage bills, a 110% jump from the prior year.
UBA’s wage bill rose by 92% to N126.6 billion, while Zenith Bank’s increased by 64% to N63.5 billion.
Inflation Impact on Salaries: With inflationary pressures, banks have substantially increased wages to retain staff, pushing some like Stanbic IBTC to pay up to N2.11 million per employee monthly. UBA is close behind with N2.09 million per month for its employees.
Rising Outsourcing Costs: Banks have also seen a sharp rise in outsourcing costs, with First Bank's expenses nearly quadrupling to N16.4 billion and Wema Bank’s outsourcing costs increasing by 272%.
Reasons for Hiring: Despite the high costs, banks are expanding staff to support growth and operations. Analyst Ike Ibeabuchi notes that these wage increases are necessary given inflation and the devaluation of the naira.
Summary Breakdown:
Significant Wage Growth: Nigerian banks have seen their wage and salary costs nearly double, reaching N615.8 billion in H1 2024, up by 96% from N314.4 billion in H1 2023. This surge is attributed to soaring inflation and new staff hires.
Top Banks and Wage Bills:
Access Holdings leads with N151.5 billion in wage expenses, a 145% increase from N61.9 billion in H1 2023.
First Bank follows closely with N134.2 billion in wage bills, a 110% jump from the prior year.
UBA’s wage bill rose by 92% to N126.6 billion, while Zenith Bank’s increased by 64% to N63.5 billion.
Inflation Impact on Salaries: With inflationary pressures, banks have substantially increased wages to retain staff, pushing some like Stanbic IBTC to pay up to N2.11 million per employee monthly. UBA is close behind with N2.09 million per month for its employees.
Rising Outsourcing Costs: Banks have also seen a sharp rise in outsourcing costs, with First Bank's expenses nearly quadrupling to N16.4 billion and Wema Bank’s outsourcing costs increasing by 272%.
Reasons for Hiring: Despite the high costs, banks are expanding staff to support growth and operations. Analyst Ike Ibeabuchi notes that these wage increases are necessary given inflation and the devaluation of the naira.