Nigeria: United Bank for Africa (UBA), Wema Bank, others enhance employees’ salaries and allowances

In response to government reforms that have aggravated inflation, several banks, including Wema Bank, Zenith Bank, Guaranty Trust Bank (GTB), United Bank for Africa (UBA) and Union Bank, have decided to enhance their employees’ salaries and allowances to help them cope with the escalating cost of living.

The inflationary situation in Nigeria was triggered by President Bola Tinubu’s decision to relax currency restrictions and eliminate gasoline subsidies upon taking office in May. These actions aimed to revive the country’s economy, which had experienced a prolonged downturn.

Consequently, the Nigerian naira’s value plummeted by approximately 40% against the US dollar, and gasoline costs surged by over three times. In June, inflation reached its highest point in seven years, prompting the government to declare a state of emergency due to soaring food prices.

United Bank for Africa (UBA) released a statement on Friday, with its CEO Oliver Alawuba announcing the immediate implementation of a cost of living adjustment for employees. Alawuba emphasized the bank’s commitment to maintaining employees’ standard of living despite the challenging economic circumstances.

 Wema Bank also joined the effort, raising its employees’ salaries to alleviate the impact of the petrol subsidy removal. The bank stressed the need for employers to prioritize their workers’ well-being amid the current economic realities, which have led to significant price increases. Zenith Bank similarly took action by implementing a company-wide salary increase to address the economic challenges stemming from the petrol subsidy removal. GTBank followed suit, raising salaries for its junior and contract staff starting from July 2023, in response to rising inflation.

Union Bank also responded to the high cost of living and the impact of subsidy removal by increasing the salaries of its workforce. Reports suggest that Access Holdings Plc is also considering a similar measure, according to company representatives.