How FG, Labour ended 2-year wage crisis

2026-03-05 - 01:36

By Victor Ahiuma-Young After nearly two years of mounting frustration, threats of industrial action, and sustained pressure from organised labour, the Federal Government and public sector unions have reached a breakthrough agreement over long-outstanding wage awards and deductions owed to federal workers. Read Also: ILO, expert raise red flag over growing youth employment crisis The turning point came after intense negotiations between representatives of the government and the Trade Union Side of the Joint National Public Service Negotiating Council, JNPSNC, alongside top officials of the Nigeria Labour Congress, NLC, on Monday, March 2. Among those at the meeting were the Minister of Finance and Coordinating Minister of the Economy, Wale Edun; the Minister of Labour and Employment, Muhammad Maigari Dingyadi; and the Permanent Secretary, Federal Ministry of Labour and Employment, Dr. Salihu Usman, representing the government. On the labour side were the National Deputy President of the NLC, Kabiru Ado; the NLC General-Secretary, Emmanuel Ugboaja; the National Secretary of the JNPSNC, Olowoyo Gbenga; the National Treasurer of the JNPSNC, Mrs. Roselyn Uba Anarah; and other labour leaders. Labour leaders had earlier issued a February 27 ultimatum demanding the immediate release of funds to settle unpaid wage awards and other allowances – a move that heightened tensions across the federal civil service and raised fears of a nationwide industrial action. It was gathered that behind closed doors, a rigorous and frank meeting took place. However, rather than spiral into confrontation, both sides emerged with a compromise. The Federal Ministry of Finance approved the payment of a three-month wage award to be disbursed sequentially beginning with February salaries – a significant concession after nearly two years of delay. In addition, the contentious issue of third-party deductions was addressed. Labour had repeatedly raised concerns over delays in remitting deductions such as cooperative contributions and other statutory payments, which were often paid weeks after salaries. Confirming the development, the National Secretary of the JNPSNC (Trade Union Side), Olowoyo Gbenga, described the meeting as exhaustive but productive, noting that both parties demonstrated a willingness to find common ground in the interest of national stability and workers’ welfare. He disclosed that the Minister of Finance acknowledged the urgency of the matter and approved the long-awaited payment of the three-month wage award. Gbenga also stated that the Minister assured Organised Labour that, henceforth, third-party deductions would be remitted simultaneously with monthly salary payments to prevent further hardship for workers. He commended the Minister of Labour and Employment for what he described as a fair-minded and proactive approach throughout the discussions. The agreement also touched on other outstanding demands, including the implementation of the 40 per cent peculiar allowance for federal public servants. While a final decision was not immediately reached, the government pledged to engage in further consultations with Labour representatives to ensure proper implementation. The breakthrough effectively averted what could have escalated into a nationwide strike, as organised labour had made it clear that failure to meet its February 27 deadline would trigger decisive action. February salaries Meanwhile, the Federal Government has commenced the payment of February 2026 salaries to treasury-funded workers nationwide after resolving a technical hitch that caused delays. This was disclosed in a statement issued on Monday in Abuja by the Director of Press and Public Relations at the Office of the Accountant-General of the Federation, Mr. Bawa Mokwa. According to the statement, payments began on Monday, March 2, following the resolution of a system disruption that affected the initial salary schedule. “The Office of the Accountant-General of the Federation has commenced the payment of February 2026 salaries to Federal Government treasury-funded workers. Payments began on Monday, March 2, 2026. “The delay in the payment of the February 2026 salaries was due to a technical hitch, which has now been resolved. Necessary measures have also been put in place to prevent a recurrence,” the statement read in part. The clarification followed concerns among federal workers over the late payment of their February salaries, which are usually credited before the end of the month. The office also provided an update on outstanding wage awards, stating that it had received approval and concluded the process for the payment of one month’s wage award arrears out of the three months owed to workers. “In addition, the Office of the Accountant-General of the Federation has received approval and concluded the process for the payment of one month’s wage award arrears out of the three months outstanding,” the statement added. The wage award was introduced as a temporary measure to cushion the impact of economic reforms and rising living costs on public sector employees. For federal public servants, the latest developments represent significant relief after prolonged uncertainty and financial strain. For the government, the resolution signals a renewed commitment to dialogue and structured engagement with labour unions. Vanguard News