Rising Compensation Costs in Nigerian Banks
A recent analysis has revealed that top executives in major Nigerian banks have received the largest share of staff compensation, with total personnel expenses rising significantly in the first half of 2025. This increase is based on the half-year reports of several leading financial institutions, including Zenith Bank, Access Holdings, Guaranty Trust Holding Company (GTCO), Stanbic IBTC, and United Bank for Africa (UBA). The data shows a notable rise in overall salaries and wages, driven by both expansion in workforce size and increased compensation packages.
Key Findings from Major Banks
Zenith Bank Plc reported a significant number of employees earning above N9 million annually. As of June 2025, about 5,579 out of 10,520 employees earned N9,000,001 and above. The lowest earners were 114 employees who earned between N300,001 and N2 million. The bank’s key management compensation, excluding certain benefits, stood at N6.50 billion for the half-year period. Total personnel expenses for the group rose to N134.57 billion from N115.90 billion in the previous year.
GTCO also reported a substantial increase in key management compensation, reaching N9.19 billion, which included N7.49 billion from an increase in Share Appreciation Rights. This scheme, managed by a special purpose vehicle, aims to retain employees by offering shares acquired by the SPV at the prevailing net book value of the bank. GTCO’s personnel expenses increased by 31.08% to N54.39 billion, with the highest number of employees earning between N4.53 million and N5.93 million.
Access Holdings Plc saw a significant jump in its personnel costs, rising by 44.29% to N229.21 billion. The group’s employee headcount increased to 9,820 from 8,009 as of June 2024. Despite this growth, key management compensation declined slightly to N655 million from N765 million in the previous year.
Stanbic IBTC Holdings Plc had the lowest number of employees among the five reviewed banks, with 3,304 as of June 2025. No employee earned below N3 million, with the lowest-paid staff earning between N3 million and N4 million annually. Most employees earned N6 million or more, and key management compensation stood at N2.87 billion, down from N3.35 billion in the corresponding period.
UBA experienced a 28.65% increase in employee compensation, reaching N172.21 billion from N133.86 billion. The majority of UBA employees earned N9 million or more, with 5,001 out of 10,393 employees falling into this category. The lowest earners were 493 employees who earned between N300,001 and N2 million, a significant reduction compared to the previous year.
Workforce Expansion and Sector Growth
The combined staff strength across GTCO, Zenith Bank, UBA, Access Holdings, and Stanbic IBTC rose to 39,903 employees in 2025, up from 35,284 in 2024, marking a 13% increase. Access Bank led in personnel spend with N229.21 billion, followed by UBA (N172.21 billion) and Zenith Bank (N134.57 billion). GTCO and Stanbic IBTC reported N54.39 billion and N53.63 billion, respectively.
Zenith Bank and Access Bank showed the steepest increases in headcount, expanding by 29% and 23%, respectively. GTCO maintained relative stability, with a modest increase from 5,827 to 5,864 employees.
Conclusion
The growth in staff numbers and compensation highlights the ongoing expansion of the banking sector despite macroeconomic challenges. The increasing focus on executive compensation and staff welfare reflects broader trends in the industry, with financial institutions striving to attract and retain talent amid rising operational costs.