Sterling Financial institution, a tier-2 Nigerian business financial institution with a market capitalization of ₦174.76 billion, has raised salaries for its over 3,000 workers to assist them deal with rising residing prices and inflation, sources accustomed to the matter confirmed. The wage adjustment, mentioned to be round 7%, was communicated in an inner memo in early January 2025.
This transfer continues a pattern amongst Nigerian banks to evaluation compensation in response to financial pressures on shopper spending. In August 2024, Sterling Financial institution launched a cost-of-living adjustment (COLA) stipend, paying ₦75,000 to workers from government trainee to assistant banking officer ranges. It stays unclear if this stipend will proceed alongside the brand new wage construction.
Whereas the exact figures aren’t publicly disclosed, three individuals confirmed the changes are primarily based on workers’ grade ranges. Sterling operates a wage banding system with will increase sometimes starting from 7% to 10%, and up to date changes have moved many workers to the highest of their respective bands. As an illustration, government trainees (ETs), beforehand incomes ₦327,000 month-to-month, will now take dwelling ₦351,000. Senior executives (junior roles above ETs) on a ₦500,000 wage will see their pay rise to ₦527,000.
To handle pay will increase with out selling workers to greater ranks, Sterling Financial institution makes use of a tiered wage construction that features inner “notches” inside every grade stage, permitting for raises with out formal promotions, based on sources accustomed to the financial institution’s compensation insurance policies.
“As an alternative of shifting workers up a grade throughout an financial downturn, firms could shift them to the upper band inside their present grade,” mentioned Chibuzo Ihentuge-Eric, an HR skilled. “It’s a sideways adjustment that displays market circumstances.”
Sterling Financial institution didn’t reply to a request for feedback.
Regardless of the wage improve, some workers have been disillusioned, anticipating a bigger increase consistent with the 20-30% will increase seen at different banks. “Contemplating inflation and the state of the financial system, this feels underwhelming,” mentioned one worker who requested anonymity.
In late 2024, Union Financial institution raised salaries by 40%, and GTBank adopted swimsuit with a 40% improve. These current raises are linked to expertise retention, a priority in an business marked by excessive worker turnover and frequent poaching. Analysis exhibits aggressive salaries are essential in lowering worker attrition in Nigeria’s banking business.
Sterling Financial institution’s revenue after tax for the interval ending September 2024 was ₦27.4 billion, a 67.07% improve year-on-year. The financial institution is projecting ₦121.8 billion in gross earnings for the primary quarter of 2025.
The financial institution’s personnel bills reached ₦22.6 billion as of September 2024, accounting for 21.67% of its whole bills, which stood at ₦104.3 billion. If the brand new wage changes increase bills by the everyday 10%, the financial institution’s wage invoice could be round ₦24.86 billion. Regardless of this, Sterling’s wage invoice stays one of many lowest amongst its friends. For comparability, Union Financial institution reported ₦34 billion in personnel bills, Constancy Financial institution ₦43.6 billion, and FCMB ₦56.5 billion.
Editor’s word: This text has been up to date to incorporate the financial institution’s whole expense within the interval underneath evaluation.
