A new report by Duplo, a company that provides financial services for businesses, has revealed that only 3.1% of finance professionals in Nigeria earn over ₦1 million, while the majority earn between ₦100,000 and ₦250,000 in 2024.
The 2024 report titled Inside the Paycheck reveals compensation trends in Nigeria's finance industry. Of 593 finance professionals surveyed, 56.2% were dissatisfied with their salary.
This is not surprising, as Nigeria's growing inflation rate has significantly reduced purchasing power. As of 2023, the National Bureau of Statistics reported that Nigeria's inflation rate was already among the worst in Africa, at over 20%.
In 2024, headline inflation rose to 34.19% driven by food and energy inflation which went up to over 40%.
More than 90% of the respondent said that inflation and FX fluctuations have negatively impacted their earnings. With salaries not increasing at the same rate, this leaves many finance professionals dissatisfied with their salaries.
Interestingly, these unfavourable economic conditions have forced 79% of finance professionals to engage in professional training as a way of increasing their earning potential.
However, many of them also decide to japa or leave the country to where their skills will earn them a better living. According to the report, japa is the second biggest reason why there is a talent churn in the finance industry.
Interestingly, 43% of those who decide to take professional training to increase their earning potential are satisfied with the outcome, while 57% are not. Over the past five years, 22% of finance professionals have relocated to other countries for better employment opportunities.
This represents a major challenge for Nigerian firms that will be forced to increase salaries to retain talent.
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A report by Philips Consulting — a Nigerian business management consulting firm — has shown that 52% of professionals in Nigeria are interested in relocating. These professionals are in fields including finance, insurance, education, and healthcare.
Meanwhile, earning reports in Nigeria have shown that many Nigerians make little money. A recent report by PiggyVest revealed that Nigerians earning more than ₦500k plummeted by 57% year-on-year.
Most reports have also revealed that the majority of Nigerians with formal employment earn between ₦100,000 and ₦150,000.
Duplo's report, however, shows that finance professionals are slightly better off as 7% of the 593 respondents earn over ₦1 million.
