In a move to combat Nigeria’s soaring inflation, BUA Group Chairman Abdul Samad Rabiu announced a staggering 50% salary increase for all staff, effective February 1st, 2024. This decision, communicated through an internal memo, aims to alleviate the economic hardship faced by employees amidst rising costs of living.
The memo, signed by BUA’s Head of Human Resources, Mohammed Wali, highlights the chairman’s intent to mitigate the impact of the current economic climate. The raise applies to both permanent and non-permanent staff, reflecting BUA’s commitment to supporting all its employees.
BUA Group Counters Inflation with 50% Salary Hike for Employees
This announcement comes amidst Nigeria’s inflation reaching an all-time high of 29.90% in January 2024, marking 13 consecutive months of increase. Food and transportation costs, major expenses for Nigerians, significantly contribute to this inflation rate.
To counter these effects, companies like BUA are resorting to wage increases. Following fuel subsidy removal last year, several businesses, particularly banks, implemented similar measures to cushion the blow for their employees.
The federal government has also established a minimum wage review committee to address the cost-of-living crisis. While they began paying a supplementary N35,000 to federal workers after fuel subsidy removal, consistency has been an issue. Notably, the Nigerian Labour Congress recently proposed a N1 million minimum wage, citing the dire economic situation.
BUA’s bold initiative sets a precedent for other companies to address the economic hardship faced by their employees. This move not only demonstrates their commitment to employee well-being but also serves as a potential catalyst for broader change in wage structure across Nigeria.
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