With Nigeria’s economy diversifying and growing, competitive pay is key to attracting and retaining top talent.
In the pursuit of maintaining market dominance in terms of performance and workforce, businesses are offering competitive salaries to their employees.
According to an analysis conducted by VoiceofNigeria, Seplat Energy, TotalEnergies, and MTN Nigeria topped the list of companies that paid the highest average salaries per staff in Nigeria in 2022, based on their average employee expenses for the year.
In this article, we will look at why these five companies pay high salaries.
1. Seplat Energy – N38.91 million
Seplat Energy, an upstream Nigerian oil company, secured the first position on the list by incurring an average annual cost of N38.91 million for its employees in 2022, marking an increase from the previous year’s average of N32.4 million.
The company allocated a sum of N23.19 billion towards personnel expenses, reflecting a significant 34.3% surge compared to the N17.27 billion recorded in the preceding year.
Despite these substantial increases in personnel costs and salaries, Seplat Energy also witnessed a growth in staff strength, with the number of employees rising by 12% to 596 from 532 in the previous year.
Notably, a breakdown of the data from the company’s audited results revealed that 43.5% of the employees earned above N14.69 million annually, which translates to an average monthly take-home of N1.22 million.
Additionally, Seplat Energy’s expenditure on housing allowances amounted to N1.44 billion in the year under review, representing an 18.3% decrease compared to the N1.76 billion spent in 2021.
2. TotalEnergies – N30.48 million
TotalEnergies secured the second position as the second highest-paying company in 2022, with an annual average personnel cost of N30.48 million.
This figure represents a notable increase from the N25.3 million incurred in the previous year, showcasing the company’s commitment to providing competitive salaries to its employees.
Despite experiencing a marginal decline of 1.61% in staff strength, from 436 employees in the previous year to 429 in 2022, TotalEnergies witnessed a 12.02% rise in salary spend, from N8.71 billion to N9.76 billion.
This increase in salary expenditure can be attributed to promotions within the company, as the number of junior staff reduced from 15 to 11, while the managerial staff increased by 6.7% to 159 individuals.
Furthermore, more than half of TotalEnergies’ employees ranked among the highest paid within the company, with 225 individuals earning above N15.5 million annually.
3. MTN Nigeria – N26.91 million
MTN Nigeria, the country’s telecommunications giant, secured the third position on the list by paying its employees an average of N26.91 million in 2022.
Although this average salary is lower than the N34.42 million recorded in 2021, it is important to note that the number of employees earning the highest annual salaries significantly increased from 612 staff members to 1,070.
This surge indicates a substantial rise in salary levels and/or promotions within the company.
Despite a 1.41% decline in staff strength, from 1,699 employees in the previous year to 1,675 in 2022, MTN Nigeria recorded a total employee cost of N45.08 billion, signifying a 6.82% decrease compared to the N48.38 billion spent in the previous year.
4. Nigerian Breweries – N19.12 million
Ranking fourth on the list is Nigerian Breweries, a prominent brewing company in Nigeria. In 2022, Nigerian Breweries recorded an average annual personnel cost of N19.12 million, representing an increase from the previous year’s average of N18.1 million.
The company allocated a sum of N51.34 billion towards personnel costs, slightly higher than the N51.01 billion spent in the previous year.
Despite a reduction in the number of employees, from 2,740 in 2021 to 2,685 in the year under review, Nigerian Breweries demonstrated its commitment to providing competitive salaries, as 84.7% of its workforce belonged to the higher-paid staff category (earning N5 million and above).
Further breakdown of the company’s personnel expenses includes shared-based payments of N1.3 billion, training and recruitment expenses of N2.15 billion, medical expenses of N1.06 billion, and other unspecified personnel expenses totaling N3.66 billion.
5. Access Holdings – N17.1 million
Access Holdings, the only bank featured in the top five highest paying salary companies, occupies the fifth position on our list. In 2022, Access Holdings incurred an average of N17.1 million in personnel costs, representing an increase from the N14.05 million recorded in the previous year.
Despite a decline in staff strength from 6,875 to 6,824 during the review period, the bank’s total personnel cost increased by 20.7% from N96.6 billion in 2021 to N116.6 billion in 2022.
Access Holdings’ restructuring efforts resulted in the payment of N105.6 billion in salaries, compared to N91.1 billion in the previous year. Analyzing the staff composition, 545 employees held managerial positions, while 6,279 employees worked in other capacities below the management level.
Further analysis revealed that approximately 10% of the employees earned N18 million and above annually in 2022.
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