Commercial banks lay off 12,000 employees in 4 years as wage costs hit record high

  • BNS data has once again demonstrated the unpredictability of labor in Nigerian commercial banks
  • According to data, more than 12,000 Nigerians working in commercial banks have lost their jobs in four years, with 1,949 laid off in 2021 alone
  • It is also important to note that the new wave of young people leaving the country has created a double headache for banks retaining qualified staff.

The National Bureau of Statistics revealed that more than 12,841 commercial bank employees lost their jobs in the last four years (2018-2021).

NBS said so in its sector performance report published on its website on Wednesday, October 12, 2022.

According to the report obtained by Legit.ngof the 103,296 workforce at the end of 2018, only 90,455 Nigerians were still employed in commercial banks at the end of 2021.

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Nigerian banks lay off staff
Overview of bank staff at the end of 2021 Credit: SNB
Source: Facebook

In 2021 alone, analysis showed that 1,949 bank workers who survived the 2020 pandemic cut lost their jobs.

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Commercial banks will lay off staff in 2021

A breakdown of the report showed that at the end of March 2021 (Q1), there were 197 managers, 16,750 senior managers, 36,594 junior managers and 38,863 contract staff to bring the total number of employees in the commercial banks at 92,404.

Interestingly, at the end of the year, the numbers look like 200 executives, 16,390 senior executives, 35,193 junior executives and 38,672 contract staff.

Breakdown of staff changes in banks in 2021 in 12 months

  • Management staff – three new employees added
  • Senior executives – 360 dismissed or resigned
  • Junior staff – 1,401 sacked or resigned
  • Contract staff – 191 dismissed or resigned

Bank wages rise to 4-year high

Meanwhile, despite the layoffs and the number of people who left the banking sector, commercial banks recorded their highest salaries and personnel costs in 2021.

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According to NBS, more than 602 billion naira was spent to care for the more than 90,000 commercial bank workers in the 12 months of 2021.

The amount spent on staff salaries in 2021 represents an increase of 14.57% from the N525.5 billion recorded in 2020.

The breakdowns showed that 516.74 billion naira was spent in 2018, 597.94 billion naira in 2019 and 525.58 billion naira in 2020.

GT and Zenith top list of Nigerian banks with highest paid executives

Meanwhile, reported how much Nigerian bank executives were earning in a sector with the largest labor employers in the country.

Managing Directors/General Managers are responsible for not only ensuring that salaries are paid, but also that profits are made.

These enormous responsibilities also come with considerable executive compensation.


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