GTB, Zenith, UBA, others raise staff salaries to N29.45trn to cushion high cost of living

In the first six months of 2023, Nigerian companies increased their staff salary by 18.35% to N29.45 trillion due to the rising inflation in the country.

This is according to NBS data showing the expenditure and income approach for the Nigerian Gross Domestic Product Report for Q1 and Q2, 2023.

The report cited in a Punch report shows that the compensation of employees, which is the total remuneration in cash or in kind payable by employers to employees for the work done, rose from N24.88tn as of the first half of 2022 to N29.45tn as of first half of 2023.

The rise is amid hardship faced in the country due to the increasing cost of living for workers in the country. The NBS stated: “In Q1 and Q2 of 2023, the Compensation of Employees grew by 15.08% and 19.41%respectively in real terms year-on-year.

“These growth rates were higher than the Q1 of 2022 and Q2 of 2022 rates recorded at 6.48% and 3.93% respectively. On a quarter-on-quarter basis, the CoE in real terms fell by 3.33% in Q1 and grew by 11.25% in Q2 of 2023. In nominal terms, the compensation of employees grew by 16.03% and 20.50% in Q1 and Q2 of 2023 respectively.”

Poverty Increases

The elimination of fuel subsidy and historically high inflation have reduced Nigerians' purchasing power and worsened the country's poverty.

By the end of June 2023, inflation had risen to 22.79%. This means a 4.19% higher than the 18.60% it was in June 2022.

Chief Economist at World Bank Nigeria, Alex Sienaert, highlighted that the loss of purchasing power from high inflation has increased poverty in the short term, pushing an estimated 4 million Nigerians into poverty between January and May 2023.

To enable staff to cope with the rising costs, some banks and other companies in Nigeria increased workers' salaries.

Legit.ng reported that Zenith Bank and United Bank for Africa (UBA) are the top Nigerian banks with the biggest employee compensation rise in the first half of 2023.

Recall that GTBank also increased the salaries of its junior and contract staff to cushion the effect of the rising cost of living.