MTN, Seplat Energy, and Lafarge retained their top positions as the highest paying companies per employee in 2021, with annual salaries averaging N20.26 million, N19.29 million, and N17.54 million, respectively.
According to Nairalytics’ compilation of data from the 50 largest firms listed on the Nigerian Exchange, over 102 000 employees received N846.88 billion in wages in 2021, up from N756.38 billion the previous year.
This data does not include companies that are not publicly traded.
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Employee loyalty and output have traditionally been linked to pay. It is noteworthy that it is suggested that a planned performance and reward system is a critical component for every firm to protect its resources and generate profits through increased employee productivity.
A closer look at the data reveals that FBN Holdings led the pack, spending N116.26 billion on total staff salaries for the year, while Dangote Cement had the largest workforce size of 17,757 in 2022
Despite an increase in average employee pay, the majority of employees at the organisations under review were paid less than the average.
The data, for example, shows that only about 39.4 percent of employees were paid within the range of the average annual income, according to the breakdown of staff remuneration range for the year.
The top 10 for the year were ranked in ascending order.
Union Bank – N13.85 million (Down four spots)
In spite of an increase in its yearly wage per employee from N13.58 million in 2020 to N13.85 million in 2021, Union Bank falls down four points from the previous year and currently occupies the tenth slot on the ranking list.
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In comparison to the N31.74 million paid to 2,337 employees the year before, the bank paid N30.33 billion in staff salaries to its 2,190 employees in 2021.
According to a quick glance at the bank’s financial statements, 69.6 percent of the staff received salaries of N5 million or more in 2021.
Stanbic IBTC Holdings – N14.18 million (Down five spots)
In comparison to the N42.18 billion spent the year before, Stanbic IBTC Holdings paid a total of N41.06 billion as personnel salaries for the 2021 fiscal year.
The number of employees on its payroll decreased from 2,972 in 2020 to 2,895 in the review year, following a similar pattern.
As a result, the company’s ranking slid five places to ninth in 2021 with an average yearly wage per employee of N14.18 million.
It’s noteworthy that in the review year, roughly 62 percent of the bank’s employees received salaries of over N6 million.
FBN Holdings – N14.21 million (up by one spot)
The amount of N116.26 billion that FBN Holdings paid in staff salaries to its 8,179 employees in 2021 indicates that the average wage per employee for the year was N14.21 million.
This moves the banking HoldCo up one spot from the previous year to ninth place.
The holding company that houses tier-1 banking major First Bank paid its 8,342 employees N89.26 billion in total staff salaries in the preceding year.
44.2 percent of the personnel received annual salaries of more than N9 million during the year under review.
Nigerian Breweries – N14.72 million (up by four spots)
Nigerian Breweries, a household name in the consumer goods and brewing industries, paid N40.5 billion in staff salaries in 2021. With 2,740 employees overall, this amounted to 14.72 million salaries paid per employee for the year, moving the company up four positions from the year before.
According to the company’s N14.72 million annual staff wage, each employee earned an average of N1.23 million each month over the course of the year. For 2020, its yearly staff wage was N9.99 million per capital.
In the year under review, just 23.9 percent of the employees of Nigerian Breweries had yearly salaries greater than N10 million.
This indicates that most employees make less than N10 million despite having an average annual wage of more than N14.7 million.
Nigerian Exchange Group – N14.79 million (Up by two spots)
The Nigerian Exchange Group, a newcomer to our list, earned N14.79 million in annual compensation per employee, putting it in sixth place, two positions higher than the previous year.
In 2021, the Exchange paid N3.03 billion in salaries to 205 employees, or N14.79 million per employee.
In 2021, the bourse paid over N9.5 million in annual salaries to 82 employees, accounting for 40% of the total workforce.
As a result, nearly 60% of this staff’s annual salary is less than N9.5 million, and possibly less than N14.79 million, indicating that a sizable minority worked for the organisation and earned significantly more.
United Capital – N15.05 million (Maintains position)
In 2021, United Capital spent N1.59 billion on personnel costs, including N1.55 billion for staff salaries and N38.48 million for contributions to defined contribution plans for its 103 employees, for a total of N14.79 million in employee salaries.
The company increased the average yearly wage for each employee from N14.04 million in 2020 to N15.05 million in 2021, a monthly wage of N1.25 million.
It is worth noting that only about 15.5% of employees received annual salaries in excess of N10 million during the review year.
Total Energies – N17.32 million (Up by three spots)
Total Energies ranks fourth among Nigerian public companies with employees, having increased its remuneration per employee from N14.72 million to N17.32 million for 2021. With the gain, the company’s ranking rose three spots from seventh in 2020.
In contrast to the N5.81 billion paid to the firm’s 438 employees the previous year, N7.55 billion was paid to the company’s 436 employees as basic compensation in 2021. A closer look at the company’s compensation structure reveals that 37.6% of the workforce will be paid more than N15 million in 2021.
- Lafarge Africa – N17.54 million (Maintains position)
Lafarge Africa, a cement manufacturer, is ranked third on the list, maintaining its position from the previous year.
Lafarge paid a total of N23.69 billion in basic salaries to its 1,351 employees, for an average annual salary of N17.54 million per employee.
The corporation increased personnel salaries by 16.8% per year, from N20.29 billion in the previous year to N23.69 billion in 2021.
In 2021, approximately 27.2 percent of Lafarge Africa employees earned more than N10 million per year.
Seplat Energy – N19.29 million (Maintains position)
Seplat Energy, an oil and gas upstream company, came in second with 532 employees earning an average annual salary of N19.29 million.
In 2021, the corporation paid a total of N10.26 billion in salaries, up from N8.48 billion the previous year.
Despite having 532 employees instead of 528 in 2020, the company maintained its second-place position. However, due to a 21.3 percent increase in staff compensation, its yearly average income per worker increased from 16.02 million to 19.29 million.
This means that each employee’s average monthly take-home pay was N1.61 million.
Notably, 38% of employees earned more than N14.69 million per year in 2021, indicating that a significant portion of the organisation earns less than the average wage.
MTN Nigeria – N20.26 million (Maintains position)
In 2022, the Nigerian telco giant paid N48.38 billion in personnel expenses, which included basic salaries and other employee benefits.
However, N34.42 billion was spent on salaries for the company’s 1,699 employees.
As a result, in 2021, the average compensation will be N20.26 million per employee, up from N16.41 million in 2020 and N1.69 million per month.
MTN ranks first in terms of employee remuneration per capita for the review year.
In fact, a larger proportion of the workforce earned less than the yearly average wage of N20.2 million, as MTN Nigeria paid more than N12.5 million as an annual average salary to 36% of its employees in 2021.
Source: Naira Metrics