Big Network Provider, MTN, Increases Staff Salaries By 17%
MTN increased salaries in a year that was plagued by the Covid-19 pandemic. This is absolutely amazing.
Nigeria’s largest mobile operator, MTN, increased the salaries of its employees in 2020 by about N4.5 billion according to findings. This is a huge increase and should be applauded.
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% increase. 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.
Related: How to easily buy MTN shares on the Nigerian stock market
Why this is important
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
