One of Nigeria’s largest banks, Zenith Bank, is set to increase staff salaries in January as galloping inflation continues to erode the purchasing power of its employees.
Sources within the bank informed Nairametrics that the management will implement new salary increases in a matter of days. This adjustment would mark the first increase for the bank since 2023, amidst rising economic pressures.
Nigeria’s exchange rate has significantly depreciated, dropping from about N910/$1 at the end of 2023 to over N1,600/$1 in early 2025, exacerbating the financial strain on Nigerians.
In response, Zenith Bank’s decision to elevate salaries comes as a move to alleviate the financial burden on its staff and retain top talent.
Leadership under Adaora Umeoji
The salary increases and widespread promotions also reflect the first major personnel adjustment under the leadership of the bank’s new Managing Director/Chief Executive Officer, Adaora Umeoji.
- Since her appointment, Umeoji has focused on building staff morale and addressing operational challenges while navigating the ever-evolving banking sector, a source remarked.
- A senior source within the bank also stated that In addition to salary increases, over 4,000 employees have reportedly been promoted across various roles within the bank.
- Zenith Bank reported it had about 8,146 employees as of June 2024.
While most staff contacted by Nairametrics confirmed hearing about the planned raises, they noted that they had yet to receive their January salaries, making it difficult to verify the actual adjustments.
Rising Costs and Competitive Challenges
Zenith Bank recorded personnel expenses of N150.5 billion in the first nine months of 2024, compared to N124 billion for the entire year of 2023.
- This substantial rise in costs reflects not only inflationary pressures but also the bank’s strategic focus on retaining top talent amid Nigeria’s competitive labor market.
- The bank faced significant IT challenges in late 2024, as software upgrades disrupted services and impacted its operational efficiency.
- Sources attribute these challenges partly to an exodus of skilled staff seeking better opportunities abroad.
- This trend has put pressure on banks to offer more competitive compensation packages and focus on talent retention strategies to maintain service quality.
Implications for the Banking Sector
Zenith Bank’s decision to adjust salaries is expected to ripple across the Nigerian banking sector. As one of the country’s largest and most influential financial institutions, any significant restructuring or compensation adjustment often sets a benchmark for the industry.
“Zenith Bank’s move will likely force other banks to review their own compensation structures,” said a senior analyst familiar with the sector.
“Talent retention is becoming increasingly challenging, and with inflation eroding income levels, banks will need to act to remain competitive.”
Furthermore, banks in Nigeria recently raised significant capital following recapitalization requirements set by the Central Bank of Nigeria (CBN). Zenith Bank, for example, raised over N290 billion in 2024, providing the financial strength to implement these changes.
