Some Nigerian lenders are voluntarily increasing staff compensation to enable workers cope with higher costs of living, following government reforms that exacerbated inflation.

Guaranty Trust Holding Co. and Wema Bank Plc have already boosted pay, while Access Holdings Plc — the country’s largest lender — is working on a similar measure, according to spokespeople for the companies.

At Guaranty Trust, raises were “given according to the different cadres of staff, with the highest consideration given to junior staff,” said Oyinade Adegite, the lender’s spokesperson, without mentioning the percentage. Wema Bank said it hiked pay by 45% for all staff.

Nigeria has faced soaring costs since President Bola Tinubu eased currency restrictions and eliminated gasoline subsidies after taking office in May.

In the meantime, the naira has plunged by about 40% against the US dollar and the cost of gasoline has more than tripled. Inflation in the country hit a seven-year high in June, and the government declared an emergency due to surging food prices earlier this month.

Unionized workers in Nigeria are in discussions with the government over how to ease the cost burden, though no action has been taken yet. Meanwhile, some banks are raising salaries to retain staff following a previous exodus of talent.

“When employees are happy with their work conditions, they are more intentional in carrying out their duties, producing better results,” said Mabel Adeteye, head of brands and marketing communications at Wema Bank.