Guaranty Trust Bank has raised the salaries of its junior and contract staff in response to the increasing cost of living.
This move was prompted by rising inflation, making the bank to double the salaries of its junior staff members accordingly.
The news of the salary increase was first circulated on social media through friends of the bank’s employees.
Upon reviewing the bank’s 2022 financial statements, it was found that there are approximately 774 staff members who earn between N770k and N1.4 million annually, making them the lowest-earning employees.
Another 340 staff members earn above N1.4 million, but less than N2.05 million per year, while 741 staff members earn between N2.1 million and N3 million annually.
The recent elimination of fuel subsidy in Nigeria has had a widespread impact on individuals throughout the country, including employees who now face higher transportation costs for their daily commuting.
In addition, inflation has led to increased fuel prices, causing public transportation providers to raise their fares.
This situation has particularly affected those who depend on public transportation, especially private sector workers.
As a result, many employees are now allocating a significant portion of their salaries solely for commuting expenses, leaving little for other essential needs such as food and rent.
Starting from July 2023, GTBank plans to implement a 100% salary increase for junior staff members, particularly those in outsourced roles like security, cleaners, and drivers.
Cleaners will now earn between N70,000 to N80,000, while drivers will receive between N140,000 to N150,000.
Most of these employees are engaged through outsourced arrangements with third-party service providers.
There are also reports suggesting that other banks may have increased the salaries of junior staff while some are reviewing their payroll costs.
Fidelity Bank, for example, has commissioned more staff buses to alleviate the commuting burden for its employees while Access Bank is also working to ensure that their 40 staff buses are operational again.
The Nigeria Labour Congress (NLC) has called for wage increases to alleviate the impact of subsidy removal on Nigerian citizens.
While the government argued that this policy will result in cost savings, reduced corruption, and increased investment in the oil sector, many citizens have expressed skepticism about the benefits and raised concerns about the negative effects on their lives.
As Nigerians adjust to these changes, it is important for stakeholders to continuously evaluate the consequences and explore measures to mitigate the adverse effects of subsidy removal, particularly on employees’ financial stability and overall well-being.
The elimination of fuel subsidy represents a significant shift in Nigeria’s economic policy, aiming to address fiscal challenges and promote market-based pricing.
However, the resulting effects on inflation, transportation costs, and individual welfare should not be underestimated.
