In response to the escalating cost of living, GT Bank has taken the proactive step of raising the salaries of its junior and contract staff.

Numerous employees of the bank, who spoke with Nairametrics, confirmed that the top-tier financial institution has doubled the salaries of its junior staff members, a move made in line with the surging inflation rates.

News of the salary increase initially surfaced on social media as friends of the bank’s employees shared the exciting development.

An examination of GT Bank’s financial statements for 2022 reveals that approximately 774 staff members fall into the bracket of earning between N770k and N1.4 million per year, representing the bank’s lowest-earning personnel.

Additionally, there are 340 employees who earn above N1.4 million but below N2.05 million annually, while 741 staff members receive salaries ranging from N2.1 million to N3 million per year.

Impact of Fuel Subsidy Removal

The recent elimination of fuel subsidies in Nigeria has had far-reaching consequences, affecting individuals across the nation, including employees who now face increased transportation expenses for their daily commute.

Furthermore, soaring inflation has resulted in higher fuel prices, prompting public transportation providers, such as buses, tricycles (keke napep), and motorcycles, to raise their fares correspondingly.

This situation has significantly impacted those who rely on public transportation, particularly individuals employed in the private sector. With transportation costs skyrocketing, many workers are now compelled to allocate a significant portion of their salaries solely to cover commuting expenses, leaving little room for other essential needs like food and rent.

GTB Raises Salary Standards

Commencing in July 2023, GTBank is set to implement a noteworthy 100% salary increase for its junior staff members, particularly those in outsourced positions, such as security personnel, cleaners, and drivers.

Nairametrics has learned that cleaners will now earn between N70,000 and N80,000, while drivers will receive salaries ranging from N140,000 to N150,000.

It’s crucial to note that a majority of these employees operate under outsourced arrangements with third-party service providers. Reports also suggest that other banks may have followed suit in raising salaries for their junior staff, while some are reportedly reviewing their payroll costs.

Sources have revealed to Nairametrics that Fidelity Bank has procured additional staff buses to alleviate the commuting burden on its employees. Additionally, Access Bank is taking steps to ensure that their fleet of 40 staff buses is back on the road.

Labor Demands Wage Hikes

Recall that the Nigeria Labour Congress (NLC) proposed a wage award to the Federal Government in an effort to alleviate the impact of subsidy removal on Nigerian citizens.

While the Nigerian government argues that this policy will lead to cost savings, reduced corruption, and increased investment in the oil sector, many citizens have expressed doubts about the benefits and raised concerns about the adverse effects on their lives.

As Nigerians adapt to these changes, it remains crucial for stakeholders to continue assessing the consequences and exploring measures to mitigate the adverse effects of subsidy removal, particularly on the financial stability and overall welfare of employees.

The elimination of fuel subsidies represents a significant shift in Nigeria’s economic policy, aimed at addressing fiscal challenges and promoting market-based pricing. However, the resulting effects on inflation, transportation costs, and the well-being of individuals should not be underestimated.

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