Union Bank of Nigeria, acquired by Titan Trust Bank in 2022, has increased employee salaries by 40% effective November 1, 2024. The decision, aimed at helping its workforce cope with Nigeria’s rising cost of living, applies to over 2,000 employees, including outsourced associates. Employees will receive arrears for November alongside their December 2024 salary, according to an internal memo seen by TechCabal.
Key Adjustments Across Roles
The salary increase spans all job grades, from executive trainees to general managers.
- Executive Trainees: Monthly pay rises from ₦260,000 ($153) to ₦364,000 ($215).
- Senior Banking Officers (SBOs): Annual gross salaries increase to ₦20 million ($11,792).
This is Union Bank’s third salary adjustment since 2022, reflecting its commitment to maintaining competitive compensation.
Industry-Wide Response to Economic Pressures
Union Bank’s move aligns with similar actions by other Nigerian commercial banks, as inflation and the devaluation of the naira continue to erode purchasing power.
- GTBank: Raised staff salaries by 40% in September 2024.
- Sterling Bank: Began paying a cost-of-living adjustment stipend in August 2024.
These measures aim to retain talent and support employees amid soaring inflation and the cost of living crisis.
Financial Impact on Union Bank
Union Bank spent ₦34 billion on personnel expenses in 2023, a 27% increase from the previous year. With the new salary adjustment, the bank’s personnel costs are projected to rise to ₦47.6 billion in 2025, marking a significant increase in operational expenditure.
Commitment to Employees
“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.
While Union Bank declined to comment publicly, the salary increase underscores its efforts to address employee welfare amid Nigeria’s challenging macroeconomic environment. This trend among Nigerian banks highlights the importance of adapting compensation strategies to retain talent and ensure workforce stability during economic uncertainty.