Economic crunch: Many employers now prefer commission-based salaries

A quiet but radical shift is reshaping Nigeria’s formal employment landscape.

Trapped under the weight of soaring operational costs, high inflation and dwindling consumer purchasing power, Economy&Lifestyle has discovered that businesses across major commercial hubs are abandoning traditional fixed salary structures.

Instead, many employers are now moving their workers, entirely or partially, to commission-based remuneration models, shifting the burden of low sales directly onto their staff.

From retail outlets to tech startups and manufacturing firms, the narrative is uniform: if you do not bring in revenue, you do not get paid.

Years back, monthly base pay was the golden standard of employment security in Nigeria.

However, as business patronage slows to a crawl, companies say maintaining a high wage bill is no longer sustainable.

“We had no choice,” says Mr. David Amaechi , the Managing Director of a mid-sized consumer electronics retail chain.