Access Bank Plc plans to cut salaries to avoid job losses as lockdown to contain the coronavirus hampers the operations of Nigeria’s biggest lender, Bloomberg reports.
The reductions are expected to start from May unless business conditions improve, disclosed the people, who were briefed on the matter during a conference call and asked not to be identified because they’re not authorized to speak publicly. Some management will get as much as a 40% reduction, they said.
A spokesman for Access Bank declined to comment.
Nigerian banks are facing the threat of rising bad-debt levels as a crash in oil prices and the risk of a naira devaluation coincide with the coronavirus pandemic that has affected businesses.
Access Bank, which acquired Diamond Bank Plc in 2019, had 6,898 permanent staff at the end of last year, according to a presentation on its website. The acquisition partly contributed to a 31% increase in operating expenses. Personnel, recruitment and training costs account for more than a third of overheads after the deal boosted employee numbers and resulted in “wage harmonization” across the businesses.
