Access Bank Plc says it plans to cut salaries of its staff in Nigeria to avoid job losses due to the impact the novel coronavirus is having on their operations.
Staff of Access Bank who spoke to Bloomberg on anonymity because they have been warned not to publicly comment on the issue said the reductions are expected to start from May and some management will get as much as a 40% cut.
The employees who were briefed on the matter during a conference call were told the reductions will not take effect if business conditions improve.
According to Bloomberg, banks in Nigeria are facing the threat of rising bad-debt levels as a crash in oil prices and the risk of a naira devaluation coincide with COVID-19 pandemic has shuttered businesses.
Access Bank acquired rival Diamond Bank Plc last year and 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 the deal boosted employee numbers and resulted in “wage harmonization†across the businesses.