The Business NG - BusinessNg

In this issue

Editorial Focus Nigeria’s inflation crisis, which climbed to an 18-year high in 2024 and has shown little sign of easing in 2025, is reshaping the cost structure of the banking industry. Faced with eroding purchasing power and the risk of talent attrition, commercial banks have been compelled to rethink staff welfare as a strategic necessity rather than a discretionary expense. The recent wave of salary reviews and cost-of-living adjustments by leading banks underscores the growing pressure on employers to shield their workforce from inflationary shocks. While these measures have driven personnel costs sharply higher, they also reflect a pragmatic response to intense competition for skilled professionals, particularly in technology, risk management and compliance. However, rising wage bills present a delicate balancing act. Banks must sustain productivity, protect profitability and continue investing in innovation, even as macroeconomic headwinds persist. Ultimately, how well the sector manages this balance will shape its resilience, service quality and long-term stability in an inflation-stressed economy.