Zenith Bank, one of Nigeria's leading commercial banks, has raised the salaries of its nearly 10,000 staff by 20%, effective January 2025, as part of a wider industry trend to retain top talent amid the country's soaring inflation. The salary increase, confirmed by three employees who asked not to be named discussing a sensitive matter, follows similar moves by GTCO, Union Bank, First Bank, and Sterling Bank over the past six months.

The bank told TechCabal via email that the salary increment, which ranges from 20% to 30%, involves all staff and is aimed at motivating its workforce and improving service delivery. Additionally, the bank promoted over 4,000 staff on January 17, 2025, in an exercise described as the largest promotion in the industry.

Nigeria's high headline inflation has put commercial banks under pressure to keep their workforce motivated and prevent talent poaching. With around 94,000 people employed in the banking sector, retaining skilled professionals remains a challenge, as job-hopping is often seen as the quickest route to career advancement. Secrecy around salary structures is one way banks try to hold on to their employees, but salary increases by major players like Zenith often trigger a domino effect, forcing competitors to follow suit.

The adjustments mean that executive trainees (ETs), previously earning ₦245,000 monthly, will now take home ₦294,000. Assistant banking officers (ABOs) on a ₦609,000 salary will see their pay rise to ₦730,800, and banking officers (BOs) on ₦800,000 will now earn ₦960,000.

The 20% to 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 in the period under review. Zenith Bank has the second-lowest wage bill among tier-1 commercial banks, with GTBank, Nigeria's cost-efficiency leader in commercial banking, spending the least on personnel expenses.

The move is part of an industry-wide response to the economic pressures and talent retention challenges. Several tier-1 and tier-2 banks have reviewed their compensation structures in recent months, with Guaranty Trust Bank, Union Bank, and Sterling Bank also announcing salary adjustments, although the percentages vary. This trend suggests that these measures are not only a response to economic pressures but also a strategic effort to reduce the risk of employee attrition, particularly as skilled professionals seek better opportunities abroad.

The salary increases and promotions by Zenith Bank and its competitors demonstrate the banks' commitment to retaining top talent and improving service delivery in a highly competitive market. As Nigeria's economy continues to navigate the challenges of high inflation and talent retention, it will be interesting to see how the banking sector adapts and evolves to meet these challenges.