2027 Minimum Wage: experts warn FG against last-minute negotiations

By Onu Okorie, Abuja

Federal Government has been urged to begin early preparations for the 2027 minimum wage review to avert another cycle of prolonged negotiations, industrial disputes and uncertainty over workers’ pay.
Experts at the Board and Management Retreat of the National Salaries, Incomes and Wages Commission (NSIWC) in Abuja said Nigeria must shift from crisis-driven wage negotiations to a predictable system anchored on inflation, workers’ purchasing power, productivity and the ability of governments to pay.
Non-Executive Chairman and former Managing Director of Access Holdings Plc, Aigboje Aig-Imoukhuede, said proactive wage governance had become necessary ahead of the next minimum wage review.
Represented at the retreat by Chioma Njoku, Aig-Imoukhuede said early and transparent preparations would allow the Federal Government, organised labour and employers to negotiate on the basis of credible economic and fiscal data rather than wait until disagreements escalate.
He identified fragmented salary structures, inadequate data, differences in the revenue capacities of states and weak enforcement as some of the major problems undermining Nigeria’s wage administration.
According to him, evidence-based reforms would improve fairness, fiscal sustainability and predictability in wage determination while strengthening public confidence in the system.
Aig-Imoukhuede said reliable labour-market information and assessments of the fiscal implications of proposed wage increases should become central to future negotiations.
Annual Wage Report Proposed
As part of measures to overhaul the system, Aig-Imoukhuede proposed the publication of an annual State of Wage Governance Report, with the first edition targeted for 2027.
The report, he said, should monitor compliance with wage policies across the country as well as workers’ purchasing power and productivity indicators, providing policymakers with evidence for future decisions.
He also recommended strengthening the Commission’s wage database and establishing mechanisms for continuous engagement among government, labour and employers.
Such engagement, according to him, would create opportunities for information sharing, scenario planning and consensus-building before disputes reach crisis point.
Aig-Imoukhuede proposed that the Commission use its first 100 days to establish its strategic vision and performance indicators as well as create an inter-agency forum on wage governance.
He further recommended a review of the country’s wage-setting methodology by the end of 2027 and the development of a national wage-governance scorecard by 2030.
Inflation, Purchasing Power Put Wage System Under Pressure
Another resource person at the retreat, Associate Professor Marvelous Isibor Aigbedion, warned that inflation, declining purchasing power, industrial conflicts and uneven implementation of wage policies were placing increasing pressure on Nigeria’s remuneration system.
Aigbedion said the country could no longer afford a system that responds to wage pressures only when workers threaten industrial action.
He advocated a transition from crisis-driven negotiations to proactive and evidence-based incomes governance supported by reliable labour-market statistics and fiscal-impact assessments.
According to him, wage governance should extend beyond determining a statutory minimum wage to include productivity, income distribution, enforcement and the wider economic policies affecting workers’ living standards.
He recommended stronger compliance mechanisms, improved payroll monitoring and faster resolution of disputes to ensure that agreed wage policies are actually implemented.
Aigbedion also proposed the creation of a technical working group that would continuously share data, assess policy options and build consensus ahead of potential wage disputes.
He called for a transparent methodology for measuring the cost of living, saying such a framework would provide a more credible basis for wage reviews.
He maintained that sustainable increases in workers’ earnings would require improvements in productivity and compliance, with remuneration policies aligned with the country’s fiscal and development strategies.
Commission Warned Against Governance Gaps
Permanent Secretary, General Services Office, Ibrahim Kana, meanwhile, warned that weaknesses in the relationship between boards and management could undermine the ability of public institutions to deliver on their mandates.
“In simple language, the board governs while management manages,” Kana said.
He noted, however, that the NSIWC has a peculiar structure in which the chairman serves as chief executive officer while the secretary is the accounting officer, making cooperation between the chairman, board, secretary and other staff critical.
Kana identified clarity of roles, trust and mutual respect, evidence-based decision-making, structured communication and accountability, and shared commitment to results as five pillars required for effective collaboration.
He recommended a clear board charter, delegation framework, committee structure and approved scheme of service to prevent duplication, interference and gaps in accountability.
According to him, decisions involving salaries, wages, incomes and productivity must be supported by reliable data, clear analysis and measurable indicators.
“A board that hears only good news is not exercising effective oversight,” Kana said.
He called for regular reports covering financial performance, implementation of strategic plans, institutional risks, audit findings, human-resource matters and projects requiring board intervention.
Kana also warned that passing board resolutions without monitoring their implementation could weaken institutional effectiveness.
He stressed transparency, ethical conduct and strong internal controls in the management of government funds, declaring: “Every naira entrusted to a public institution belongs ultimately to the Nigerian people.”
The Permanent Secretary also called for stronger documentation, knowledge management and succession planning to preserve institutional memory during leadership changes.
The discussions at the retreat effectively put the 2027 minimum wage review on the policy radar, with participants arguing that early planning, credible economic data and continuous engagement could help Nigeria avoid another contentious wage negotiation and produce a remuneration framework that balances workers’ welfare with the fiscal capacity of government.