Nigeria: Govt to Formulate New Wage System Based On Workers' Productivity

13 May 2024

Abuja — The Federal Government on Monday hinted that formulation of an innovative wage system that will be based on employee's productivity in the civil service is underway.

The Director-General of the National Productivity Centre, NPC, Dr. Nasir Raji-Mustapha, dropped the hint in Abuja while enlightening Nigerians on what the agency stands for and its mandate.

The DG explained that with the system, workers on the same level could earn different salaries, adding that the decision was being taken because it realised that productivity is a key factor in the growth of the country's economy.

According to him, "We are in the process of developing a productivity-led wage system that will ensure that those who are productive are rewarded for their efforts irrespective of their grade level. Under the proposed system, employees on the same salary scale can earn different wages."

Fielding question on whether the proposal has the support and input of the organised labour, he responded that such policy couldn't be carried out without the input of the organised.

Dr Raji-Mustapha said, "Of course, labour as a critical stakeholder is being carried along in this exercise. As researchers, we don't just do things without considering the recipient of the reports.

"When we started the project about three or four years ago, we held stakeholders' forum which the labour unions participated. We even went further to send memo to NLC and TUC to ask them whether they will support the proposed Wage System and they said they will welcome it".

He said that the report for the first phase of the study was s ready, adding that the next stage will be to engage various stakeholders to consider and make input before final presentation to the federal government for its consideration and possible adoption.

The NPC boss also disclosed that the Centre was collaborating with a number of international agencies and organisations to ensure that productivity and skills of Nigerian workers are greatly improved to impact positively on the economy.

He stated specifically that NPC has widened its scope of collaboration between it and international agencies such as the International Labour Organization (ILO), Japanese International Cooperation Agency ,(JACA), Africa Productivity Association and Asia Productivity Association.

According to him, the Centre has done a lot in the area of productivity promotion and advocacy for youths, especially the Youths Corp members at the NYSC camps, adding NPC has resuscitated preaching and promoting productivity at the NYSC camps.

He also disclosed that the Vice President of Nigeria, Kashim Shettima would be the keynote speaker at the two-day National Productivity Summit organised by the centre and holding on Tuesday May 14, in Abuja.

He said, "The summit is very important because in today's rapidly evolving global landscape, you will agree with me that there is need for increased productivity. We must harness the power of science, technology and innovation and to use them to optimize the resources in the country and the VP is the keynote speaker," he added.

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