In a decisive move to support its workforce, Union Bank of Nigeria has increased employee salaries by 40%, effective November 1, 2024. This marks the third such adjustment since the bank’s acquisition by Titan Trust Bank in 2022, reflecting an industry-wide trend as Nigeria grapples with soaring inflation and currency devaluation.
For many employees, this increase is more than a financial adjustment—it’s a lifeline.
Navigating a Cost-of-Living Crisis
Nigeria’s economic landscape has been challenging in 2024. Inflation has surged to record highs, eroding purchasing power and placing significant pressure on household incomes. The naira’s devaluation further exacerbates the problem, driving up the cost of imports and consumer goods.
According to data from the National Bureau of Statistics, inflation reached 28% in October 2024, its highest level in over a decade. Essentials such as food, transportation, and housing now consume a larger share of disposable income, leaving employees in various sectors struggling to make ends meet.
Recognizing these realities, Union Bank’s latest salary increment aims to cushion the impact on its over 2,000 employees, including entry-level trainees, senior managers, and even outsourced associates.
What the Numbers Say
The salary adjustment offers tangible relief for Union Bank employees:
- Executive trainees, who previously earned ₦260,000 ($153) monthly, will now take home ₦364,000 ($215).
- Senior Banking Officers (SBOs) will see their annual gross salary rise to ₦20 million ($11,792).
The ripple effect is significant, as the increase ensures competitive pay across all levels of the bank’s workforce. With personnel expenses already at ₦34 billion in 2023, Union Bank is set to allocate ₦47.6 billion in 2024 to sustain the adjustments—an impressive commitment to its people amid economic uncertainty.
An Industry-Wide Trend
Union Bank is not alone in responding to Nigeria’s economic headwinds. Other banks have also taken proactive steps to support their staff.
GTBank, known for its efficiency, raised salaries by 40% in September 2024.
Sterling Bank introduced a cost-of-living stipend in August 2024, directly addressing inflation-related challenges.
These moves underscore a shift in the banking industry, where employee welfare is increasingly viewed as a strategic priority. Competitive salaries are essential for retaining top talent in a market where consumer spending power is under siege.
Why This Matters
Union Bank’s latest adjustment is not just about numbers—it’s a reflection of its corporate ethos. “The recent adjustments to our compensation and benefits package strongly reflect Union Bank’s commitment to investing in our employees and aligning with industry standards,” the bank stated in its internal memo.
This commitment is evident in its approach to employee welfare since its acquisition by Titan Trust Bank. The 40% hike comes after two previous salary reviews, ensuring employees can navigate rising living costs without compromising their quality of life.
The Broader Picture
While these salary hikes are a positive development, they also highlight the challenges businesses face in balancing employee welfare with profitability. For Union Bank, this meant a 27% increase in personnel costs from 2022 to 2023—a figure that is set to rise significantly in the coming year.
But for employees like Jane, a banking officer (name changed for anonymity), the impact is life-changing. “When you’re living paycheck to paycheck, even small increases make a big difference. This raise means I can save a little more and stop worrying about how to cover basics like rent and food.”
Looking Ahead
As Union Bank takes bold steps to safeguard its workforce, the question remains: how sustainable are these measures in the long term? Can banks continue to absorb rising operational costs while remaining competitive?
For now, Union Bank employees have a reason to breathe easier. In a country where financial stress is the norm, the bank’s commitment to its people sets a hopeful precedent—one that other sectors may soon follow.
