MTN Nigeria increases salaries of its staff
Nigeria's largest mobile operator MTN increases the salaries of its staff by 17% despite the year that was marred by the COVID-19 pandemic.
Nigeria’s largest mobile operator, MTN, increased the salaries of its staff in 2020 by about N4.5 billion according to findings by Financial Stand Research.
The telecom firm reported a total increase in its salaries and wages from about N25.79 billion in 2019 to about N30.2 billion in 2020, representing about a 17% bump. On average, MTN paid N16.4 million per staff per annum in 2020 compared to N13.79 million per staff in 2019 representing an 18.9% increase. This is also because its headcount dropped by about 26 people.
A deep dive into its annual reports also reveals the salary increase was across the board for the year under review. Based on the increase, the least amount a staff earns is N3.5 million per annum from N2.5 million a year earlier.
Analysis of salary increases
- About 141 staff saw their salaries increase to above N3.5 million per annum in 2020.
- Another 260 staff were bumped to a salary scale of between above N7.5 and N8.5 million.
- Finally, another 158 employees were moved to a salary scale of above N12.5 million per annum, its highest pay bracket.
- In summary, a total of 599 employees received various levels of salary increases during the year.
Executive Directors of MTN also reported a pay raise from N586 million per annum in 2019 to N732 million in 2020. This is attributed to the appointment of Modupe Kadiri as Executive Director in March 2020.
Why this matters
The year 2020 was a peculiar year mostly due to the negative effects of Covid-19 which ravaged the finances of most corporations in Nigeria. At the height of the pandemic, some Nigerian companies resorted to downsizing and reduction of overheads as a strategy to maintain financial solvency. However, MTN’s salary increase is a huge departure from the norm.
- MTN reported a 15% increase in revenue (to N1.3 trillion) as Nigerians gobbled up data due to Covid-19 stay-at-home restrictions by the government and most private-sector corporations.
- MTN share price is down 6% year to date.