UPDATE - Access Bank to slash staff salaries to keep away from lay off

Nigeria’s Access Bank Plc is planning to cut staff salaries to avoid laying off as coronavirus continues to

ravage the world and affect global economies, Bloomberg reported.

Bloomberg on Friday reported that “people with direct knowledge of the matter” said the pay cuts are expected to start from May unless business conditions improve.

The sources who were briefed on the matter during a conference call and asked not to be identified because they’re not authorized to speak publicly said some management members will get as much as a 40% decrease.

Access Bank had 6,898 permanent staff at the end of 2019, according to a presentation on its website.

A video circulating on social media platforms reinforces the claims. The Guardian can not categorically confirm the authenticity of the footage.

Access Bank spokesman declined to comment when contacted by Bloomberg.

Major states in the country have been on lockdown since the index case of the virus was reported in the country. Many of the financial institution resorted to working from home to keep up with operations.

But the crash in oil prices and the risk of a naira devaluation due to the pandemic poses a greater threat of rising bad-debt levels.

Banks in Lagos are expected to open for limited hours as from Monday, May 4. The restriction on working hours is expected to run for at least two weeks. 

The state government said it will review the restriction after two weeks.