Sterling Bank has implemented a salary raise for its over 3,000 employees to address the rising cost of living and inflation.
Sources confirm the adjustment, approximately 7%, was announced via an internal memo in early January 2025.
This development aligns with a broader trend in Nigeria’s banking sector, where institutions are reviewing compensation structures to mitigate economic pressures on their workforce.
Sterling Bank had previously introduced a ₦75,000 cost-of-living adjustment stipend in August 2024 for employees ranging from executive trainees to assistant banking officers. It remains unclear if this stipend will continue alongside the revised salary structure.
While exact figures are undisclosed, sources revealed that the adjustments are based on employees’ grade levels. Sterling Bank operates a tiered salary banding system, typically offering raises between 7% and 10%. For example, executive trainees who previously earned ₦327,000 per month will now receive ₦351,000, while senior executives earning ₦500,000 will see their pay rise to ₦527,000.
To implement these increases without promoting employees to higher grades, Sterling Bank uses “notches” within each grade level, allowing for raises while maintaining the same rank.
However, some employees expressed dissatisfaction with the raise, expecting increments closer to the 20-30% hikes implemented by other banks. “Considering inflation and the state of the economy, this feels underwhelming,” said one employee told TechCabal anonymously.
The banking sector has seen significant salary adjustments in recent months. Union Bank increased salaries by 40% in late 2024, followed by GTBank with a similar hike. These moves are partly aimed at retaining talent in an industry marked by high turnover and frequent poaching.
Sterling Bank remains in a strong financial position, reporting a profit after tax of ₦27.4 billion for the period ending September 2024—a 67.07% year-on-year increase. The bank forecasts gross earnings of ₦121.8 billion for the first quarter of 2025.
Personnel expenses for Sterling Bank stood at ₦22.6 billion as of September 2024, accounting for 21.67% of its total expenses. If the new salary adjustments result in a typical 10% increase, the bank’s wage bill would rise to approximately ₦24.86 billion. Despite this, Sterling’s personnel costs remain among the lowest in the industry. For comparison, Union Bank reported ₦34 billion, Fidelity Bank ₦43.6 billion, and FCMB ₦56.5 billion in personnel expenses over the same period.
