Federal Government Plans New Wage System Based On Workers’ Productivity

A novel remuneration structure based on the efficiency of employees in the public sector is currently in progress, as announced by the federal government.
Dr. Nasir Raji-Mustapha, the Director-General of the National Productivity Centre (NPC), revealed this during a meeting with Labor Correspondents on Monday, explaining that under this new system, employees at the same rank may receive varying salaries.
Raji-Mustapha emphasized that the development of an inventive compensation system was being explored due to the government’s recognition of productivity as a crucial element in the advancement of the nation’s economy. He stated, “We are in the process of formulating a compensation system driven by productivity that will ensure that individuals who exhibit high productivity levels are duly rewarded irrespective of their rank. Within this proposed framework, employees sharing the same pay scale could potentially earn disparate salaries.”

When questioned about the level of support and involvement of organized labor in the proposed productivity-driven wage system, the NPC chief underscored that such an endeavor could not be undertaken without the engagement of labor representatives.
Raji-Mustapha remarked, “Naturally, labor, being a critical stakeholder, is being actively involved in this initiative. As researchers, we don’t make decisions unilaterally without taking into account the intended recipients of our findings. Approximately three to four years ago, we initiated this project and convened a stakeholders’ forum which included representatives from labor unions. Furthermore, we reached out to the NLC and TUC through a memorandum to seek their endorsement of the proposed Wage System, to which they expressed a positive reception.”
He further revealed that the initial phase of the study had been completed, and the subsequent step would involve engaging with various stakeholders for feedback and suggestions before presenting the comprehensive report to the federal government for review and potential adoption.
Additionally, he disclosed that the Centre was collaborating with several international entities to enhance the productivity and competencies of Nigerian workers for a more favorable impact on the economy.

In particular, he highlighted that the NPC had broadened its collaborative efforts with global organizations such as the International Labour Organization (ILO), Japan International Cooperation Agency (JICA), Africa Productivity Association, and Asia Productivity Association. He noted that the Centre had undertaken significant efforts in promoting productivity and advocacy among young individuals, particularly the National Youth Service Corps (NYSC) members at their camps, and had revived initiatives to promote productivity within these camps.

He also revealed that the Vice President, Kashim Shettima, was slated to deliver the keynote address at a two-day National Productivity Summit organized by the Centre, to be held in the nation’s capital on Tuesday.
“The summit holds great significance because, in the fast-evolving global landscape of today, it is evident that there is an imperative for heightened productivity. We must harness the potential of science, technology, and innovation to optimize the available resources within the country, and the VP will be delivering the keynote address,”he concluded.
By: Nwakaji Peace Martins