In a move to retain top talent amid Nigeria’s soaring inflation, Zenith Bank has increased salaries for its nearly 10,000 staff by 20%, effective January 2025. This development is part of a wider industry trend, as commercial banks scramble to keep their workforce motivated and prevent talent poaching.

The salary hike, confirmed by several employees, follows similar moves by other major banks, including GTCO, Union Bank, First Bank, and Sterling Bank, over the past six months.

According to Zenith Bank, the salary increment aims to “continue to motivate its staff and improve service delivery.” The bank also promoted over 4,000 staff on January 17, 2025, in one of the largest promotions in the industry.

Nigeria’s high inflation rate has put pressure on commercial banks to keep their workforce motivated. With around 94,000 people employed in the banking sector, retaining skilled professionals remains a challenge.

Job-hopping is often seen as the quickest route to career advancement, making it essential for banks to review their compensation structures.

The salary adjustments will see executive trainees earning ₦294,000 monthly, up from ₦245,000. Assistant banking officers will receive ₦730,800, a rise from ₦609,000, while banking officers will earn ₦960,000, up from ₦800,000.

This 20% – 30% raise will result in a bigger wage bill for Zenith Bank. As of September 2024, the bank’s personnel expenses reached ₦97.496 billion, accounting for 22.86% of its overall expenses.

The salary increases are not unique to Zenith Bank. Several tier-1 and tier-2 banks, including Guaranty Trust Bank, Union Bank, and Sterling Bank, have also announced salary adjustments in recent months.

This industry-wide response suggests that banks are not only reacting to economic pressures but also strategically working to reduce employee attrition, particularly as skilled professionals seek better opportunities abroad.