Nigeria’s banking titans—the FUGAZ group (First Bank, UBA, GTCO, Access, and Zenith)—are digging deeper into their pockets to retain talent. New financial data from the Nigerian Exchange (NGX) reveals that the country’s five most systemically important banks collectively spent ₦1.23 trillion on personnel expenses in their latest reporting periods.
The “Inflation Hedge” Adjustment The surge represents an 18% year-on-year increase (roughly ₦190 billion) from the ₦1.04 trillion spent in 2024. Analysts point to a “triple threat” driving these costs:
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Hyper-Inflation: Banks have been forced to implement mid-year salary adjustments to help staff cope with the rising cost of living.
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The “Japa” Effect: To stem the brain drain of tech and finance talent moving abroad, tier-one lenders are offering more competitive packages.
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Pan-African Expansion: Lenders like Access and UBA are hiring aggressively to support their growing footprints across the continent.
Breaking Down the Top Spenders The latest filings highlight how individual giants are managing their human capital:
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First HoldCo Plc: Leads the group with a massive ₦385.91 billion spend, up from ₦308.47 billion in 2024. Interestingly, despite the annual hike, its Q4 costs saw a marginal dip, suggesting a tightening of efficiency toward the year-end.
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UBA: Reported a jump to ₦256.61 billion (up from ₦216.04 billion). The bank attributed this to its sustained investment in human capital to support its sprawling pan-African operations.
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GTCO: Also posted an increase, bringing its personnel bill to 101.05 billion.
Why It Matters for Investors While rising costs usually worry shareholders, the FUGAZ banks still control over 70% of customer deposits in Nigeria. By prioritizing “staff wellness” and salary competitive, these banks are betting that a motivated workforce is the only way to protect their dominance in an increasingly digital and competitive fintech landscape.
The ₦1.23 trillion bill is more than just a cost—it is a strategic defensive play to keep Nigeria’s banking “engine room” running amid macroeconomic turbulence.
