Nigeria’s inflation crisis, which surged to 34.80% in December 2024, is reshaping the workforce dynamics across industries, with the banking sector feeling the heat. To cushion the impact on its employees and stay competitive, Zenith Bank has implemented a 20% salary increase for nearly 10,000 staff, effective January 2025. This move follows similar adjustments by other tier-1 banks, including GTCO, First Bank, and Union Bank, as inflation continues to erode purchasing power.
In an email revealed to TechCabal, Zenith Bank confirmed the raise, stating:
“In order to continue to motivate its staff and improve service delivery, Zenith Bank implemented a salary increment of between 20% – 30% involving all staff effective January 2025. The Bank also promoted well over 4,000 staff on January 17, 2025, marking one of the largest promotion exercises in the industry.”
Inflation’s Strain on Talent Retention
The rising cost of living has left employees in the banking sector grappling with reduced disposable incomes. For the industry, this means an increased risk of talent loss, as professionals often seek higher-paying opportunities to stay ahead of inflation. Nigerian banks, which employ over 94,000 people, are now leveraging salary hikes as a retention strategy.
Zenith Bank’s updated salary structure is a clear response to these pressures. Executive trainees (ETs) who earned ₦245,000 monthly will now take home ₦294,000. Assistant banking officers (ABOs) previously on ₦609,000 will see their pay rise to ₦730,800, while banking officers (BOs) earning ₦800,000 will now receive ₦960,000.
The Ripple Effect Across the Industry
This adjustment highlights a growing trend: salary reviews in one tier-1 bank often prompt competitors to follow suit. With Zenith Bank’s significant raise and promotions, other banks may feel the pressure to match these efforts to remain attractive to skilled professionals.
Beyond salary increases, the move signals a deeper shift in workforce management. By addressing the financial realities of their employees, banks are not only boosting morale but also safeguarding service delivery standards. For Nigeria’s banking sector, where inflation is reshaping consumer behavior and operational costs, this strategy is as much about survival as it is about staying competitive.
As inflation continues to bite, the question remains: how will other industries adapt to the changing economic landscape? For now, the banking sector is leading the charge, showing that investing in employees is not just good for business—it’s essential.
