FG Seeks Balance Between Workers’ Pay, Fiscal Realities As NLC Ultimatum Nears Deadline

The Federal Government has called for a balance between workers’ demands for higher salaries and its financial capacity as the Nigeria Labour Congress (NLC)’s two-week ultimatum over petrol prices and minimum wage negotiations approaches its deadline.

Secretary to the Government of the Federation (SGF), George Akume, made the call on Monday, October 19, 2026, during the board retreat of the National Salaries, Incomes and Wages Commission in Abuja.

Akume, who was represented by the Permanent Secretary in the Office of the SGF, Dr Abubakar Kana, said wage decisions must consider workers’ welfare, prevailing economic conditions and the government’s ability to meet its financial obligations.

Akume said the commission had an important role in balancing workers’ expectations with the country’s broader economic development needs.

“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.

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

The SGF also urged the commission to strengthen its research capacity, embrace digital technology and improve consultations with organised labour and employers to ensure salary decisions reflect reliable economic data.

Akume warned that avoidable industrial disputes could undermine stability, stressing the importance of constructive engagement between the government and labour unions.

NLC Demands Petrol Price Reduction, Minimum Wage Negotiations

The NLC issued a two-week ultimatum to the Federal Government on October 8, demanding a reduction in petrol prices and the commencement of negotiations for a new national minimum wage.

The ultimatum took effect on Friday, October 9, with the deadline approaching on October 23.

In a communiqué signed by its president, Joe Ajaero, the labour union demanded that petrol prices be reduced to the level prevailing when the current national minimum wage was signed into law in 2024.

The union also called for negotiations on a new minimum wage to begin before the end of October, arguing that inflation, the depreciation of the naira and rising living costs had eroded the purchasing power of workers earning the current statutory minimum wage of ₦70,000.

Other demands include tax relief for workers, immediate wage awards to cushion economic hardship, and the implementation of outstanding agreements involving the Joint Health Sector Unions and the Joint Public Sector Negotiating Council.

The NLC warned that failure to address its demands within the stipulated period could lead to further action.

FG And NLC Disagree Over Timing Of Wage Review

The dispute has intensified following disagreements over when negotiations for a new minimum wage should begin.

The Federal Government has maintained that the current minimum wage, signed into law on July 29, 2024, is due for review in June 2027 under the applicable three-year review cycle.

The NLC, however, has rejected the government’s position, arguing that preparations for a fresh wage agreement should begin well before the next implementation date.

In a letter dated October 13, the union said commencing negotiations early would allow sufficient time for discussions and help prevent delays in implementing a new wage agreement.

The NLC also argued that workers needed immediate relief measures, including wage awards, tax relief and lower petrol prices, rather than waiting for the next formal minimum wage review.

Speaking at Monday’s retreat, Chairman of the National Salaries, Incomes and Wages Commission, Junaidu Bindawa, said inflation, changing labour expectations and pressure on public finances required a more sustainable approach to wage administration.

He said salary policies affect government expenditure, productivity, industrial relations and public service performance.

The commission’s leadership called for a shift from reactive salary adjustments towards a more structured system based on evidence, consultation and accountability.

Meanwhile, NLC President Joe Ajaero maintained that the union’s ultimatum remained in force, keeping pressure on the government to address workers’ demands.

With the deadline approaching, attention is focused on whether further engagement between both sides will produce an agreement and prevent an escalation of industrial action.

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