NLC Ultimatum: FG Seeks Balance Between Workers’ Wages, Fiscal Realities

According to report by punch on Monday, October 19, 2026 ABUJA — The Federal Government has called for a balance between workers’ demands for improved wages and the country’s financial realities as tensions mount over the Nigeria Labour Congress’ (NLC) ultimatum on petrol prices and fresh negotiations on the national minimum wage.

The government said sustainable wage policies were essential to protecting workers’ welfare, maintaining industrial harmony and supporting national economic development.

The Secretary to the Government of the Federation (SGF), George Akume, stated this on Monday at the board retreat of the National Salaries, Incomes and Wages Commission (NSIWC) in Abuja.

Akume, who was represented by the Permanent Secretary, General Services Office, Office of the Secretary to the SGF, Dr Abubakar Kana, said wage decisions must reflect prevailing economic conditions while addressing the legitimate expectations of workers.

“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.

His remarks came as the NLC maintained its two-week ultimatum to the Federal Government to take measures to reduce petrol prices and commence fresh negotiations on the national minimum wage.

The SGF noted that ongoing economic reforms, rising public expectations and preparations for the 2027 general elections had made sustainable wage administration increasingly important.

He identified evidence-based wage policies, institutional modernisation and effective implementation of recommendations as key priorities for the commission.

According to him, salary reviews should be guided by credible economic data and consultations with organised labour, employers and other relevant stakeholders.

Akume also urged the commission to strengthen its research capacity, embrace digital technology and establish measurable performance targets to improve the effectiveness of public sector wage administration.

He warned that failure to maintain constructive engagement with labour unions could trigger avoidable industrial disputes and undermine 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, the President of the NLC, Joe Ajaero, maintained that the union’s ultimatum remained in force, signalling that the possibility of industrial action had not been ruled out.

Ajaero, however, declined to negotiate the matter during the retreat, insisting that the government needed to take steps to address workers’ economic hardship before the situation escalated.

The labour dispute has heightened concerns over the rising cost of living and the ability of workers to cope with prevailing economic conditions.

Earlier, the Chairman and Chief Executive Officer of the NSIWC, Junaidu Bindawa, said inflation, changing labour expectations and pressure on public finances had made comprehensive reforms to wage administration necessary.

He explained that salary policies had far-reaching implications for government expenditure, productivity, industrial relations and overall 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 physical 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.

Bindawa said the three-day retreat should produce a practical roadmap with clear priorities and measurable outcomes, rather than recommendations that might not be implemented.

The commission’s Secretary, Olajumoke Okoya-Thomas, also called for a shift from reactive salary reviews to a permanent, evidence-based wage governance system.

She traced the history of wage review exercises in Nigeria to earlier commissions, 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 represented more than a doubling of the previous statutory minimum, underscoring the importance of balancing workers’ welfare with long-term economic sustainability.

She said the retreat would examine issues including fair compensation, reliable data, social dialogue, institutional capacity and accountability.

According to her, the proposed action plan would align with Nigeria Agenda 2050 and the Medium-Term National Development Plan for 2027–2030.

In a goodwill message, the Head of the Civil Service of the Federation, Abel Enitan, said reforms in the public service were critical to achieving the Federal Government’s target of building a $1 trillion economy by 2030.

He identified workforce development, improved employee welfare and the digitisation of government operations as key priorities.

Enitan also highlighted plans to establish a fully paperless working environment as part of efforts to improve efficiency and service delivery across government institutions.

He stressed that the civil service must become more productive, efficient, transparent and citizen-centred to support economic growth and improve public service delivery.

The retreat brought together government officials, labour representatives and other stakeholders to discuss reforms aimed at strengthening Nigeria’s public sector wage administration.

As the NLC’s ultimatum remains in force, the Federal Government faces the challenge of addressing workers’ concerns while managing fiscal constraints and sustaining economic reforms.

Aynewsupdate feedback-opera-news-app@opera.com