Nigerian banks see executive pay surge amid varying profit trends

Major Nigerian banks are experiencing a significant divergence between executive compensation and shareholder earnings. Audited financial statements for 2025 show that remuneration for top directors at Zenith Bank and First HoldCo increased by over 100 per cent, despite relatively modest growth in profits.

At Zenith Bank, the highest-paid director’s remuneration rose 110.9 per cent to ₦367 million, while profit after tax increased by only approximately 0.7 per cent. Similarly, the highest-paid director at First HoldCo saw a 101 per cent pay increase to ₦195 million.

In contrast to these compensation trends, First HoldCo reported a high return on average equity (ROAE) of 31.63 per cent for the first quarter of 2026, the highest among tier-1 banks in Nigeria and South Africa. The company’s shares have risen 194.4 per cent this year, supported by significant investment from Chairman Femi Otedola, who holds approximately 27.6 per cent of the company.