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In the first half of the year, 13 listed Nigerian banks paid a total of N291 billion in wages and salaries to their employees, an increase of 11.8% over the N260.36 billion reported in the similar period of last year. 

This is due to a 15.3% increase in total personnel expenses from N276.9 billion in H1 2021 to N319.29 billion in the review period, which includes additional perks for employees such defined benefit obligations and pension contributory schemes. 

Between January and June 2022, Access Bank, First Bank, and UBA had the highest personnel costs.

Staff remuneration, a crucial component of human resource management, has recently been connected to organizational performance because it encourages individuals to perform to their highest potential, enhancing the effectiveness of the company. 

Here is a list of the top 10 banks listed on the Nigerian Exchange (NGX) based on the total wages and salaries paid to employees in the first half of the year. This list takes into account the staff size as of the review period (if available) or as of the end of 2021 in order to calculate the average salary per employee in H1 2022.

Between January and June 2022, Access Bank spent a total of N58.27 billion on human costs, up 33.9% over the N43.5 billion spent during the same period in 2021. A total of N50.91 billion of this sum was utilized to pay wages and salaries to the company’s employees.

Despite a decrease in staff strength, its personnel compensation climbed dramatically. Notably, its overall workforce decreased from 6,497 employees in June 2021 to 6,040 employees in June 2022. While its average employee wage for the six-month period was 8.43 million, the highest among the other twelve banks, it was the highest on a per capita basis. According to a breakdown of the bank’s personnel costs, a defined benefit obligation rise of N5.01 billion was incurred. The review period saw N1.57 billion in contributions to defined contribution plans and N785 million to restricted share performance plans.

First Bank of Nigeria’s parent firm, FBN Holdings, spent N55.3 billion on staff costs in the first half of 2022 as opposed to N51.2 billion in the same time of 2021. 

However, because the results for the first half of the year were an unaudited result, the bank did not disclose the breakdown of its employee expenses. However, year over year, human costs rose by 7.9%. The firm employed 8,179 people as of December 2021, according to the bank’s statement, which translates to N6.76 million in expenses per employee over the course of the previous six months.

UBA spent a total of N52.29 billion on human costs in the first half of the year, which is a 22.7% increase over the N42.62 billion tallied during the same period the year prior. 

Additionally, UBA paid N48.75 billion in wages and compensation during the review period, a 20.1% increase over the N40.57 billion reported during the same period in 2021. According to the report’s breakdown, defined contribution plans received N2.2 billion in funding. Benefits for termination cost N1.34 billion in the meantime. Between January and June 2022, compensation for UBA’s 10,275 employees totaled an average of N4.74 million per capita.

In the first half of 2022, Zenith Bank spent N39.74 billion on human costs, a 5.1% rise over the N37.58 billion recorded in the same period of 2021. The cost of salaries and compensation increased by 5.1% to N36.7 billion over the reviewed period. 

By the end of June 2022, the tier-one bank had 8,152 employees, up from the 7,847 employees that were tallied as of June 2021. The average wage of staff members for the six-month period was N4.5 million based on the staff size as of the review period and salary expenses. Zenith Bank spent N2.07 billion on employee pension contributions, and N964 million went toward other staff expenses.

Between January and June 2022, Stanbic IBTC Holdings, the parent business of Stanbic IBTC Bank, sent a total of N24.68 billion as personnel costs. From N20.2 billion in H1 2021, Stanbic IBTC boosted their employee expenses by 22.2% annually. 

Additionally, its wages and salaries rose by 20.7% to N23.79 billion, and the number of staff members increased to 2,911 from 2,895 as of the previous year. Salary and pay for each employee throughout the past six months was N2.91 million. The holding firm also spent N888 million on equity-related transactions.



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