In a bid to enhance efficiency and foster economic growth, the federal government of Nigeria announced on Monday, May 13, that it is in the process of implementing a new wage system in the civil service based on employees’ productivity.
This innovative approach aims to reward workers based on their individual contributions, potentially leading to varying salaries among employees at the same level.
The revelation came from Nasir Raji-Mustapha, the Director-General of the National Productivity Centre (NPC), during a meeting with Labour correspondents. Raji-Mustapha emphasized the importance of productivity in driving economic development, highlighting the need for a wage system that aligns with employees’ performance.
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“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,” stated Raji-Mustapha. “Under the proposed system, employees on the same salary scale can earn different wages.”
Addressing concerns about stakeholder involvement, Raji-Mustapha assured that organized labor has been actively engaged in the development of the new wage system. He underscored the collaborative nature of the initiative, emphasizing the importance of labor’s input in shaping the framework.
“Of course, labor 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 a stakeholders’ forum in which the labour unions participated. We even went further to send a 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.
The NPC has completed the first phase of the study, with the next stage involving extensive stakeholder engagement to refine the proposed system before presenting it to the federal government for consideration and potential adoption.
Furthermore, Raji-Mustapha revealed the NPC’s collaboration with international agencies and organizations to enhance the productivity and skills of Nigerian workers. Partnerships with entities such as the International Labour Organisation (ILO) and the Japanese International Cooperation Agency (JICA) aim to leverage global expertise and resources to bolster productivity in the country.
Highlighting the importance of youth empowerment, Raji-Mustapha noted the NPC’s efforts in promoting productivity among youth, particularly members of the National Youth Service Corps (NYSC). Initiatives to revive productivity advocacy at NYSC camps underscore the NPC’s commitment to fostering a culture of efficiency among the younger generation.
The culmination of these efforts will be the upcoming National Productivity Summit, where Vice President Kashim Shettima will serve as the keynote speaker. Raji-Mustapha emphasized the need for the summit to address the exigencies of the evolving global economy and harnessing science, technology, and innovation to optimize national resources.
“The summit is very important because, in today’s rapidly evolving global landscape, you will agree with me that there is a need for increased productivity. We must harness the power of science, technology and innovation and use them to optimise the resources in the country and the VP is the keynote speaker,” he added.
The federal government’s initiative to implement a productivity-based wage system reflects a strategic approach to incentivizing performance and driving economic growth. With stakeholder collaboration and international partnerships, the NPC aims to lay the groundwork for a more productive and prosperous future for Nigeria.