Bank Workers Reject 25% Salary Increase After 7 Years Of Alleged Stagnant Pay

Bank Workers Reject 25% Salary Increase After 7 Years Of Alleged Stagnant Pay

Members of staff of the popular financial institution, LAPO Micro Finance Bank (MFB), have kicked against the bank management’s move to increase staff salaries by only 25% and 12.5% after 7 years of alleged stagnant pay.

Exclusive reports obtained by Kemi Filani reveal that the last time LAPO MFB’s staff‘s salaries were reviewed was in 2016, and their staff doesn’t allegedly get the annual (step) increment other organizations and institutions enjoy. “Our salaries have been stagnant since 2016 after they reviewed them upwards by 15%.

The management only reviews staff salaries at will. It can take 10 or 7 years, which is not supposed to be so.” A staff member who pleaded anonymity told Kemi Filani

It was gathered that as of 2016, before the 15% review, graduate (BSC/HND) staff (CSOs) earned a net salary of seventy-five thousand, seven hundred and fifty naira, eighty-six kobo (N75,750.86K), and after the review, their net pay became ninety-eight thousand, three hundred and fifty-six naira, forty-one kobo (N98,356.41K). While Branch Managers (BM) get the same salary but an extra eight thousand naira (N8,000) as duty allowances.

2017 LAPO CSO payslip

2022 BM salary pay slip with duty allowances of 8,000

It was gathered that after seven years of stagnant pay, the bank management decided to increase staff salaries by 25% for Junior staff (Graduate CSO, BM, Auditors, and AM) and 12.5% for senior staff (zone managers, ZM).

“We have had stagnant salaries for years with no one being able to complain. If you do, they will threaten to transfer you to another state, far away from your family. After we were able to complain, they decided to increase it by 25% for Junior staff and 12.5% for senior staff,” another staff member whispered to Kemi Filani.
The staff continued, “We have told them that due to the current economic situation in the country, a 25% increase after 7 years wouldn’t make sense. I am a graduate working for over 10 years, and up until now, my net pay has not been up to $100,000. I cannot complain or renegotiate my pay; they only decide when to review it, which isn’t a standard practice anywhere.”
“We have begged them to at least review CSO salaries to 135K, BM salaries to 160K, and so on, but they refused. Over the years, everything has increased exponentially and become more expensive: transportation, food, school fees, house rent, etc. But our salaries have been stagnant or move like snails,” another staff member who pleaded anonymity cried out.
“Also, they have refused to pay us institutional bonuses since 2020. They claim that CBN has not updated its financial records. We work hard for these people. We trek looking for customers and clients, but they treat us like rags and pay us peanuts. They will disengage staff without a query, warning letter, or suspension letter; they will just disengage staff like that, which is not the standard anywhere,” another staff member added.
Kemi Filani News reached out to the Education Operation of LAPO MFB, Faith Ojo; however, she chose not to respond at the time of writing this report.
A message was also sent to Oluremi Akande, Head, Communications & Branding, of the institution, but no response was received at the time of filling out this report.
Recall that in 2022, LAPO MFB was nominated and won the “Microfinance Bank of the Year” 2022 award in the 10th edition of the Businessday Banks and Other Financial Institutions (BAFI) Awards event.
In a press release, Oluremi Akande, Head, Communications & Branding, said “LAPO MfB has won this award category for the 9th consecutive time, a recognition of LAPO’s industry leadership and its consistency in the delivery of its core mandate of social and economic empowerment of members of low-income households through the provision of responsive financial services and social interventions sustainably impacting lives and communities”.