FG urges balance between workers’ pay, fiscal realities

…tasks NSIWC on strategic wage governance, institutional renewal

…NLC urges FG to address economic hardships facing workers

The Federal Government has called for a balance between workers’ demands for improved remuneration and the government’s fiscal realities, amid growing concerns over the rising cost of living and the threat of renewed industrial action.

Secretary to the Government of the Federation (SGF), Senator George Akume, made the call on Monday at the opening of a three-day Board and Management Retreat of the National Salaries, Incomes and Wages Commission (NSIWC) in Abuja.

The retreat, themed “Vision, Strategy and Institutional Renewal,” comes as the Nigeria Labour Congress (NLC) maintains its two-week ultimatum to the Federal Government to reduce petrol prices and commence fresh negotiations on the national minimum wage.

Represented by the Permanent Secretary, General Services Office, Dr Ibrahim Abubakar Kana, Akume said wage policies must reflect prevailing economic conditions while protecting workers’ welfare and supporting national development.

“The commission must continually balance the legitimate expectations of workers with the fiscal realities of government and broader imperatives of national economic development,” he said.

The SGF identified evidence-based wage policies, institutional modernisation and effective implementation of recommendations as priorities for the commission, stressing the need for credible economic data and consultations with organised labour, employers and other stakeholders.

He also urged the commission to strengthen its research capacity, embrace digital technology, improve data management and establish measurable performance targets to enhance its effectiveness.

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Akume warned against avoidable industrial disputes, emphasising that constructive engagement among government, labour and other stakeholders was necessary to maintain industrial peace and promote economic stability.

“A credible and inclusive approach towards governance is indispensable to building trust, preventing avoidable industrial disputes like we’re about to have now, and promoting a stable environment for national development,” he said.

Meanwhile, NLC President, Joe Ajaero, urged the Federal Government to take urgent measures to address the economic hardships confronting Nigerian workers.

Ajaero, who spoke at the retreat, said workers contributed significantly to government revenue through taxation and deserved policies that would improve their welfare amid rising living costs and declining purchasing power.

He stressed the need for practical interventions to ease the economic burden on workers and protect their livelihoods.

The labour leader had earlier maintained that the union’s ultimatum remained in force, raising concerns over the possibility of industrial action if the government failed to address its demands.

Earlier, the Chairman and Chief Executive Officer of the NSIWC, Maj.-Gen. Junaid Sani Bindawa (retd.), said inflation, changing labour expectations and pressure on public finances had made sustainable wage administration increasingly important.

He explained that wage policies had far-reaching implications for government expenditure, productivity, industrial relations and public service performance.

“Our work must reflect a careful balance between the legitimate expectation of workers, the imperatives of productivity and social justice, and the fiscal capacity of government,” Bindawa said.

He called for stronger research, reliable data, improved compensation management and closer collaboration between the commission’s Board and Management to strengthen wage governance.

Bindawa said the retreat should produce a practical roadmap with clear priorities and measurable outcomes to ensure that its recommendations translate into tangible institutional improvements.

Also speaking, the Secretary to the Commission, Olajumoke Okoya-Thomas, called for a shift from reactive salary reviews to a permanent, evidence-based wage governance system.

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She cited previous wage review exercises, including the Morgan Commission of 1964, the Adebo Commission of 1971 and the Udoji Commission of 1974, before the establishment of the NSIWC in 1993.

“We exist so that wage decisions rest on evidence, not emergencies,” she said.

Okoya-Thomas noted that the 2024 national minimum wage more than doubled the previous statutory minimum, underscoring the need to reconcile workers’ welfare with economic sustainability.

She said the retreat would examine fair remuneration, reliable data, social dialogue, institutional capacity and accountability, with an action plan aligned with Nigeria Agenda 2050 and the Medium-Term National Development Plan for 2027–2030.

In his remarks, the Head of the Civil Service of the Federation, Olumuyiwa Enitan Abel, said ongoing reforms were aimed at repositioning the civil service to become more efficient, productive, incorruptible and citizen-centred.

Abel described the relationship between his office and the commission as a partnership essential to the welfare, development and advancement of the Federal Civil Service.

He said continuous dialogue and mutual understanding were necessary to address issues relating to salaries, wages and incomes, even when disagreements arose.

The Head of Service expressed confidence that a properly equipped and digitally enabled workforce would contribute to the implementation of the Renewed Hope Agenda and the Federal Government’s ambition of building a $1 trillion economy by 2030.

The three-day retreat is expected to strengthen the commission’s strategic direction, improve internal processes and develop practical measures for ensuring a fair, sustainable and responsive wage administration system.