Nigerian commercial bank Union Bank has raised staff salaries by 40% to help its over 2,000 employees cope with the rising cost of living in the country. The salary increase took effect on November 1, 2024, and employees will receive the arrears for November along with their December 2024 salary, according to an internal memo seen by TechCabal.

The salary increase applies to all employees, ranging from executive trainees to general managers, and outsourced associates, the internal memo said. Executive trainees, who were earning ₦260,000 ($153) per month, will now take home ₦364,000 ($215) per month, according to sources with direct knowledge of the bank's salary structure. A senior banking officer (SBO) will now be bumped to ₦20 million ($11,792) in annual gross salary, a second person shared.

This is the third salary increase Union Bank has implemented since 2022, when it was acquired by Titan Trust Bank. The bank's commitment to investing in its employees and aligning with industry standards is reflected in the recent adjustments to its compensation and benefits package, according to the memo.

Union Bank spent ₦34 billion on personnel expenses in 2023, a 27% jump from the previous year, according to its financial statements. The 40% increase means the bank would spend ₦47.6 billion in the coming year.

The salary increase comes as part of a broader trend among Nigerian commercial banks responding to the country's macroeconomic situation. In September 2024, GTBank, a tier-1 commercial bank known for cost efficiency, raised staff salaries by 40% and Sterling Bank, a tier-2 bank, began paying employees a cost of living adjustment stipend in August 2024.

These measures are expected to keep salaries competitive as a naira devaluation and soaring inflation have triggered a cost of living crisis and put consumer spending under pressure. By increasing salaries, Union Bank and other Nigerian commercial banks aim to maintain employee morale and productivity in the face of economic uncertainty.

The move also underscores the importance of employee compensation in the banking industry, where talent retention and acquisition are crucial for business success. As Nigerian banks navigate the challenges of a volatile economy, investing in their workforce may be a key strategy for staying competitive and driving growth.

Union Bank did not immediately respond to a request for comments on the salary increase. However, the bank's commitment to its employees and industry standards is clear in its recent actions, and the move is likely to have a positive impact on employee morale and productivity.