The Federal Government has called for a balance between workers’ demands for improved salaries and the government’s financial capacity amid rising labour tensions over petrol prices and negotiations for a new national minimum wage.

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

Akume, represented by the Permanent Secretary in the General Services Office of the Office of the SGF, Dr Abubakar Kana, said wage decisions must reflect prevailing economic conditions while protecting workers’ welfare.

He said the commission must balance the legitimate expectations of workers with government revenue constraints and the broader requirements of national economic development.

Akume noted that the approaching 2027 general elections, ongoing economic reforms and rising public expectations 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.

The SGF said salary decisions should be guided by reliable economic data and consultations with organised labour, employers and other stakeholders. He also urged the commission to strengthen its research capacity, embrace digital technology and establish measurable performance targets.

Warning against avoidable industrial disputes, Akume stressed the importance of constructive engagement between the government and labour unions in maintaining industrial stability and supporting national development.

The intervention comes as the Nigeria Labour Congress (NLC) maintains its two-week ultimatum to the Federal Government to reduce petrol prices and commence negotiations for a new national minimum wage.

NLC President Joe Ajaero said the ultimatum remained in force, although he declined to negotiate the demands during the retreat. He maintained that the government should introduce measures to address workers’ economic hardship before industrial action becomes necessary.

Earlier, the Chairman and Chief Executive Officer of the NSIWC, Junaidu Bindawa, said inflation, changing labour expectations and pressure on public finances required a more sustainable approach to wage administration.

Bindawa explained that salary policies influenced government expenditure, productivity, industrial relations and public service performance. He called for stronger research, reliable data, improved compensation management and closer cooperation between the commission’s board and management.

He urged participants to ensure that the three-day retreat produced a practical roadmap with clear priorities and measurable outcomes rather than recommendations that might not be implemented.

The commission’s Secretary, Olajumoke Okoya-Thomas, said Nigeria needed to move away from reactive salary reviews towards a permanent, evidence-based wage governance system.

She recalled 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.

Okoya-Thomas said wage decisions should be based on evidence rather than emergencies, noting that the 2024 minimum wage more than doubled the previous statutory minimum and underscored the need to reconcile workers’ welfare with economic sustainability.

She added that the retreat would examine fair remuneration, data reliability, 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.

Also speaking, the Head of the Civil Service of the Federation, Abel Enitan, said civil service reforms were essential to achieving the government’s target of building a $1 trillion economy by 2030.

Enitan identified workforce development, improved staff welfare and the digitisation of government operations as priorities, including plans to establish a fully paperless working environment.

He said a more efficient, productive, accountable and citizen-centred civil service would be critical to economic growth and improved public service delivery.

The retreat brought together government officials, labour representatives and other stakeholders to consider reforms aimed at strengthening public sector wage administration and improving the sustainability of salary policies.