After nearly two years of tension, threats of industrial action, and sustained pressure from organised labour, the Federal Government and public sector unions have reached a breakthrough agreement on long-outstanding wage awards and deductions owed to federal workers.
The resolution followed intense negotiations on Monday, March 2, between government representatives and the Trade Union Side of the Joint National Public Service Negotiating Council alongside leaders of the Nigeria Labour Congress (NLC).
The meeting brought together top government officials including 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 of the Federal Ministry of Labour and Employment, Dr. Salihu Usman.
Representing labour were the NLC National Deputy President, Kabiru Ado; the NLC General Secretary, Emmanuel Ugboaja; the National Secretary of the Joint National Public Service Negotiating Council, Olowoyo Gbenga; and the council’s National Treasurer, Roselyn Uba Anarah, among other union leaders.
Labour ultimatum forced negotiations
The agreement came days after labour leaders issued a February 27 ultimatum demanding the immediate release of funds to settle unpaid wage awards and other entitlements owed to federal workers. The warning had heightened tensions within the federal civil service and raised fears of a nationwide strike.
However, sources said the closed-door meeting between both parties was frank and extensive, eventually leading to a compromise.
As part of the resolution, the Federal Ministry of Finance approved the payment of a three-month wage award, which will be disbursed sequentially beginning with workers’ February salaries — a major concession after nearly two years of delay.
The negotiations also addressed concerns over third-party deductions, which labour groups had repeatedly complained were not remitted on time. These deductions include cooperative contributions and other statutory payments that workers rely on.
Confirming the outcome, Olowoyo Gbenga described the discussions as “exhaustive but productive,” noting that both sides showed willingness to reach common ground in the interest of workers and national stability.
He said the Finance Minister acknowledged the urgency of the issue and approved the long-awaited wage award payments. According to him, the government also assured organised labour that third-party deductions will henceforth be remitted simultaneously with salary payments to prevent further hardship for workers.
Gbenga also commended the Labour Minister for what he described as a fair and proactive role in facilitating the negotiations.
Government to review other demands
The talks also touched on other unresolved issues, including the implementation of a proposed 40 per cent peculiar allowance for federal public servants. While a final decision was not reached on the matter, the government pledged to continue consultations with labour representatives to ensure proper implementation.
The agreement effectively prevented what could have escalated into a nationwide strike, as organised labour had earlier warned that failure to meet its February 27 deadline would trigger industrial action.
FG begins payment of February salaries
Meanwhile, the Federal Government has commenced payment of February 2026 salaries to treasury-funded workers nationwide after resolving a technical issue that delayed the process.
The development was disclosed in a statement issued in Abuja by the Director of Press and Public Relations at the Office of the Accountant-General of the Federation, Bawa Mokwa.
According to the statement, salary payments began on Monday, March 2, following the resolution of a system disruption that had affected the initial payment schedule.
The Office of the Accountant-General also confirmed that approval had been received for the payment of one month’s wage award arrears out of the three months owed to workers, with the process already concluded.
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 many federal workers, the agreement brings relief after months of uncertainty and financial pressure, while the government says the resolution reflects its renewed commitment to dialogue and structured engagement with labour unions.
