One of Nigeria’s biggest lenders, Access Bank Plc may cut salaries to avoid job losses as a lockdown to contain the effect of coronavirus has continued to hamper its business operations across the country.
The bank said it would be left with no choice other than to effect the reductions from May should the situation persist, said the people, who are familiar with the matter. Some management will get as much as a 40% decrease, they said. (Bloomberg Report)
Business across Nigeria are facing hard times with the ravaging effect of coronavirus which has crippled most business. 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 Covid-19 pandemic that has shuttered businesses.
In the aviation industry, some airlines have asked majority of their staffs to embark on compulsory leave since last month with 20% of salaries to be paid.
Access Bank plc, commonly known as Access Bank, is a Nigerian multinational commercial bank, owned by Access Bank Group. It is licensed by the Central Bank of Nigeria, the national banking regulator.
Access Bank, which acquired rival Diamond Bank Plc last year, had 6,898 permanent staff at the end of 2019, 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