"There was no advance notice regarding the raise. Although there were rumors, I did not anticipate this increase," stated an assistant banking officer (ABO), who now receives ₦720,000 ($442). The ABO position is just one step above entry-level in GTBank's organizational hierarchy, which features fewer levels compared to other Tier-1 banks.
The bank, known for its low cost-to-income ratio, spent only ₦0.29 to generate ₦1 in 2023, reinforcing its position as Nigeria's most profitable Tier-1 bank. The salary increase will have a minimal impact on GTBank's financial metrics, as it will now allocate ₦0.30 to earn ₦1 based on the previous year's figures.
In 2023, GTBank's salary expenditure amounted to ₦45.1 billion ($27.7 million), which is at least three times lower than that of other Tier-1 banks. Even with the nearly 50% salary hike, raising the total personnel cost to ₦63.1 billion ($38.7 million), GTBank still maintains the lowest salary expenses among its Tier-1 counterparts, according to the 2023 financial reports.
GTBank has not yet provided a response to requests for comments.
The economic reforms initiated by President Tinubu, which include two currency devaluations and the elimination of fuel subsidies, have resulted in the naira losing nearly 70% of its value against the dollar and inflation soaring to 30%, significantly impacting the financial situation of Nigerians.
While the bank is adapting to these economic shifts, the salary increase may also serve as a strategy to deter other banks from recruiting its employees.
In 2022, the bank increased the salaries of its technology team by 100% due to a significant number of employees transitioning to other banks and countries. As a result, the technology team continues to receive higher compensation compared to employees in other departments; for instance, a technology staff member at the same level as an Assistant Banking Officer earns approximately ₦1 million ($613), according to a source familiar with the bank's compensation structure.
This salary adjustment impacted all 3,300 employees at GTBank, marking a departure from the typical practice in the banking sector where such benefits were primarily reserved for head office personnel. This marks the first salary increase for 2024 and the second adjustment in two years for GTBank employees.