Union Bank of Nigeria, a level 2 commercial bank, increased the salaries of all employees, from management trainees to general managers, by 40%. The bank hopes that the increase will help its more than 2,000 employees cope with the rising cost of living in Nigeria, caused by the rapid depreciation of the naira and inflation.
Leadership trainees who previously earned a salary of ₦260,000 ($153) will now receive a monthly salary of ₦364,000 ($215). Currently, the total annual salary for a Senior Banking Officer (SBO) is £20 million ($12,000).
The increased salaries is a win-win situation for Union Bank. This is good news for employees whose salaries have been squeezed due to macroeconomic conditions. It will also help the bank remain competitive in an industry where employees often move from bank to bank in search of better salaries. The pay hike will also increase Union Bank’s overhead costs. In 2023, the bank spent £34 billion ($20.2 million) on salaries alone. A 40 percent hike could see the new wage bill reach £47.6 billion ($28.2 million).
