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That our take home pay may take us home: The case for Nigerian wage reform (2)

BusinessDay
6 Min Read

Addressing the remuneration challenge requires a comprehensive, evidence-based approach that balances fiscal sustainability with the imperative to attract and retain talent in public service. Drawing lessons from successful reform experiences across Africa, several strategic pathways merit consideration. These include Comprehensive Compensation Reform, Investment in Human Capital Infrastructure, Enhanced Accountability and Performance Management, and Structured Engagement with Professional Bodies.

A systematic review and adjustment of public service compensation is essential, particularly for specialised professionals whose qualifications command premium value in global labour markets. This approach should consider not only base salaries but the entire compensation package, including benefits, professional development opportunities, and performance incentives. Countries like Ghana have demonstrated that targeted reforms can yield significant improvements in public service performance and retention of key personnel.

The establishment of an institutionalised wage adjustment mechanism linked to economic indicators such as inflation would provide greater predictability and sustainability, reducing the need for periodic industrial actions that disrupt service delivery. This approach has been successfully implemented in several Commonwealth African nations, contributing to greater public service stability and effectiveness.

Compensation reform must be complemented by strategic investments in the infrastructure that enables public servants to perform effectively. Enhancing research facilities, administrative systems, and professional development opportunities creates an ecosystem where talent can thrive and contribute meaningfully to national development. Rwanda’s experience demonstrates how integrating compensation reform with broader investments in public service infrastructure can significantly enhance institutional performance and service delivery.

Also, strengthening accountability mechanisms and performance management systems ensures that compensation reforms translate into measurable improvements in service delivery. Botswana and Mauritius offer instructive examples of how transparent performance metrics can align individual incentives with institutional objectives, creating a virtuous cycle of improved performance and appropriate recognition.

A successful reform requires meaningful dialogue with professional associations and labour unions. Rather than reactive negotiations during crises, establishing structured, ongoing engagement creates opportunities for collaborative problem-solving and sustainable agreements. South Africa’s experience with public service bargaining councils demonstrates how institutionalized dialogue can contribute to more stable labour relations and policy outcomes.

Several African nations have implemented innovative approaches to public service compensation that offer valuable lessons for Nigeria. Mauritius has developed a comprehensive civil service reform programme that balances competitive compensation with performance accountability, contributing to its reputation for effective governance and public service delivery.

Similarly, Rwanda has made strategic investments in its public service, including competitive compensation for key professionals, as part of its broader development strategy. Also, Ghana’s public service reform programme, initiated in 1986, included significant improvements in human resource management and compensation structures. While implementation challenges remain, Ghana’s experience demonstrates the importance of sustained commitment to reform and strategic prioritization of high-impact interventions.

The concept of “brain circulation”, rather than brain drain, offers another promising approach. By creating conditions where Nigerian professionals abroad can contribute to national development through periodic engagements, collaborative research, and knowledge transfer, Nigeria can leverage its global diaspora as an asset rather than viewing emigration solely as a loss. Countries like China have successfully implemented infrastructure and incentives to attract their internationally trained citizens back home or maintain productive connections.

A vision for transformation

The transformation of Nigeria’s public service remuneration represents not merely a technical adjustment but a strategic investment in national capacity and development. By aligning compensation with qualifications, responsibilities, and economic realities, Nigeria can create conditions where public service attracts and retains the talent necessary to drive institutional excellence and national progress. This reform agenda requires not only financial resources but political will and strategic vision. The current administration has the opportunity to initiate a paradigm shift in how Nigeria values and invests in its public servants, particularly those responsible for knowledge generation and human capital development that underpin long-term economic transformation.

The path forward demands collaborative engagement between government, professional bodies, and other stakeholders to design and implement sustainable reforms. While challenges remain significant, the potential returns – in terms of enhanced institutional capacity, improved service delivery, and accelerated national development – render this an investment worthy of serious consideration and committed action.

In the words of leadership scholar Warren Bennis: “The factory of the future will have only two employees, a man and a dog. The man will be there to feed the dog. The dog will be there to keep the man from touching the equipment.” While humorous, this observation underscores the central truth that in an increasingly knowledge-driven global economy, human capital represents our most valuable resource and most strategic investment opportunity.

 

Prof. Sunday E. Atawodi is of the Federal University Lokoja, Kogi State.

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