The NLC’s forceful tactics, while highlighting the urgency of addressing civil servant wages, have left many Nigerians feeling trapped in a lose-lose situation. The economic shutdown disproportionately impacted everyday citizens struggling to make ends meet. In my organisation, not a single goal was met on Monday, 3 June, as people struggled to meet their targets, on a work-from-home day.

In a deliberate act that would leave over a hundred million Nigerians in the dark, struggling to comprehend the sudden and inexplicable loss of grid-supplied power in over 35 states, the national grid was shut down, not by the inexplicable equipment failure that has happened fairly regularly over the last few years, but by brutal tactics that were deliberately employed.

As the clock struck 01:15 hours, operators in the Benin Transmission Operator, under the Independent System Operations unit, were forcibly driven out of the control room, and those who resisted were met with violence. Some were beaten, while others were wounded in the course of being forced out of the control room, without any form of supervision or control. The Benin Area Control Centre was subsequently shut down.

Other transmission substations, including Ganmo, Benin, Ayede, Olorunsogo, Akangba, and Osogbo, were also shut down. At 03:23 hours, the authorities attempted to recover the grid using the Shiroro Substation to feed the transmission lines supplying bulk electricity to the Katampe Transmission Substation. However, the recovery efforts were met with resistance, leaving the country in the dark.

It was only when the dust settled that the true extent of the sabotage became clear to the general public. The perpetrators were none other than the Nigeria Labour Congress (NLC). Their actions were a blatant disregard for the well-being of the country and a clear demonstration of their willingness to use violence and intimidation to achieve their goals. The NLC’s demands for an unreasonable wage increase had been met with resistance from the government, and they decided that the best way to force a pay rise for their members was to violently shut down the country’s economy in order to force the government to accede to their demands.

The NLC did not stop at shutting down the national grid. It also went to the seaports and the airports. The ports were shut down, with cargo-laden trucks and trucks returning empty containers unable to access and exit. Demurrage and storage charges started piling up, leaving businesses counting losses. The aviation sector was also severely affected, with flights grounded and passengers stranded at airports. The NLC also sealed the main gate of the National Ear Care Centre in Kaduna, chased out workers and prevented outpatients from accessing the hospital.

The NLC must have chosen this path because it felt that a simple, peaceful withdrawal of its services would have been insufficient to show the importance of its input to the workplace. Instead, the NLC chose to resort to tactics that would bring the country to its knees, leaving over a hundred million Nigerians in the dark and struggling to cope with the consequences of their actions.

Some Nigerians have acted under the impression that the NLC is fighting for all Nigerians, but the NLC’s demands are primarily focused on securing higher wages for federal civil servants, who represent less than 1 per cent of the country’s workforce. While its success may provide short-term relief for this less than one per cent, it is unclear how this would benefit the broader population or address the underlying economic challenges facing Nigeria.

The NLC’s approach focuses on securing gains for a small workforce segment, rather than pursuing comprehensive economic reforms that could lead to sustainable growth and lower inflation. Let us recalculate the new national wage bill for civil servants, if the minimum wage is set to the ₦600,000 figure that has been demanded. Making this ₦600,000 the minimum wage for the 720,000 civil service workers leaves Nigeria with a monthly wage bill of ₦4,320,000,000 (four hundred and thirty-two billion naira). This comes to ₦5,184,000,000,000.00 (five trillion, one hundred eighty-four billion naira) annually.

For context, in 2022 and 2023, the Federal Inland Revenue Service (FIRS) collected record amounts of ₦10.1 trillion and ₦12.4 trillion as tax revenue for the entire federation. Given that the Nigerian budget for 2024 is ₦27 trillion, allocating nearly 20 per cent of the budget to a group that constitutes less than one per cent of the workforce raises concerns about the efficiency and impact of such expenditures.

When a significant portion of the budget is devoted to increasing public sector wages, it can lead to a rise in aggregate demand without a corresponding increase in supply. The likelihood that this wage increase would not be matched by a corresponding increase in economic productivity is high due to several factors:

Nigeria needs to implement a performance-based pay structure that links a portion of a civil servant’s wage to achieving specific performance targets. This structure should hopefully incentivise efficiency, innovation, and improved service delivery. Clear and measurable performance metrics tailored to different roles within the Civil Service would be required…

First, structural issues: Nigeria faces significant structural economic challenges, including infrastructure deficits, energy supply issues, and a high unemployment rate, particularly among recent graduates. These issues can hinder productivity growth.

Second, limited scope for efficiency gains: The Nigerian Civil Service has been criticised for inefficiency and corruption. Without substantial reforms, increased wages are unlikely to translate into higher productivity.

Third, there is a mismatch with workforce needs: Investing heavily in a small segment of the workforce (one per cent of the total workforce) does not address broader economic needs, such as improving skills and job opportunities for the larger unemployed population.

In an environment where the prices of household items have literally doubled over the last year, the general public should consider the potential impact of the wage increase on inflation and poverty rates for most Nigerians before supporting the NLC’s cause and methods.

However, given the NLC’s strong stance, it is plausible that the government will concede to some degree on wage increases for civil servants. That is likely to happen before the end of the month. In typical Nigerian government fashion, only extreme behaviour elicits a serious reaction.

But if we want to break out of this vicious cycle, focusing on ensuring a corresponding rise in productivity becomes crucial and here are two key strategies to consider:

First, we should look at performance-based incentives. Nigeria needs to implement a performance-based pay structure that links a portion of a civil servant’s wage to achieving specific performance targets. This structure should hopefully incentivise efficiency, innovation, and improved service delivery. Clear and measurable performance metrics tailored to different roles within the Civil Service would be required, and regular performance reviews can track progress and guide adjustments to individual or department-wide goals.

Second, we should initiate and ensure proper skills development and training programmes. The NLC/TUC should demand that the government invest in comprehensive training programmes to equip civil servants with the latest skills and knowledge relevant to their positions. These could include technical skills training, soft skills development workshops, and a leadership training programme. To offer specialised training courses that enhance civil servants’ expertise and qualifications, partnerships with universities or professional organisations should be pursued.

There is also value in considering the introduction of an hourly wage system that allows them to have second jobs. Admittedly, the introduction of an hourly wage system for civil servants would present several challenges not limited to tracking work hours. There is also the potential for abuse if clear guidelines are not established to prevent unauthorised overtime or misuse of flexible work arrangements. If not carefully managed, a focus on billable hours could potentially come at the expense of core job responsibilities. However, there is merit in exploring alternative hourly models that could enhance civil servants’ income potential.

Two things that we should look to introduce and monitor closely are clearly defined and regulated overtime pay, which could incentivise additional work during peak periods without disrupting core functionalities, and project-based bonuses, where rewarding the successful completion of special projects or exceeding targets could motivate extra effort and a results-oriented mindset.

Other drawbacks to be considered are those related to conflicts of interest, so clear guidelines are needed to distinguish between civil service duties and private work. There’s also the issue of effective time management to avoid burnout or neglect of core duties for either gig.

Ultimately, Nigeria’s path forward lies in building bridges, not walls. The country can create a future where civil servants are valued, and the public thrives by fostering open dialogue, prioritising reforms, and embracing innovative solutions. This delicate balancing act will require compromise and a commitment from all stakeholders to prioritise the collective good.

There are several civil servant skill sets that could be valuable in the gig economy, depending on their specific roles, and the NLC or TUC ought to be at the forefront of pushing their members in these directions. Three that can be focused on include:

Business Development and Consulting: Civil servants with experience in trade, investment, or public procurement could offer consulting services to small and medium-sized enterprises (SMEs) navigating the regulatory landscape or seeking government contracts. Their insider knowledge and expertise can be valuable assets for businesses.

Technical Skills and Training: In sectors like agriculture or infrastructure development, civil servants with technical expertise in crop cultivation, irrigation systems, or construction could provide training workshops or consultations to private companies or rural communities. This knowledge transfer can boost agricultural yields or improve construction practices.

Education and Literacy Programmes: Teachers and curriculum developers could offer online tutoring or design educational materials for private institutions or NGOs working on adult literacy programmes. Their pedagogical skills and understanding of the local curriculum can be valuable assets.

These are just a few examples, and the possibilities can expand on the basis of the specific skill sets and local market demands. By embracing the gig economy strategically, Nigerian civil servants can enhance their professional development, contribute to private sector growth, and improve their overall well-being.

The NLC’s forceful tactics, while highlighting the urgency of addressing civil servant wages, have left many Nigerians feeling trapped in a lose-lose situation. The economic shutdown disproportionately impacted everyday citizens struggling to make ends meet. In my organisation, not a single goal was met on Monday, 3 June, as people struggled to meet their targets, on a work-from-home day.

Finding a solution to the legitimate issues the unions have raised demands a shift from confrontation to collaboration. The government, the NLC, and civil society organisations must come together and commit to a nonviolent negotiation culture that aims to create win-win outcomes.

Transparency and a commitment to the national interest are vital. The government should check its reckless spending, and the labour unions should accept the need to prioritise streamlining civil service to eliminate redundancies and inefficiencies. Tighter controls over corruption are essential to ensure that any wage increase translates into better service delivery.

Investments in training and performance-based incentives can further empower civil servants and boost productivity. Civil servants, beyond seeking higher wages, can explore options to enhance their earning potential. Clearly defined overtime pay or project-based bonuses can incentivise extra effort without disrupting core functionalities. The burgeoning gig economy offers possibilities, but safeguards are necessary to prevent conflicts of interest and ensuring that core duties are not neglected.

Ultimately, Nigeria’s path forward lies in building bridges, not walls. The country can create a future where civil servants are valued, and the public thrives by fostering open dialogue, prioritising reforms, and embracing innovative solutions. This delicate balancing act will require compromise and a commitment from all stakeholders to prioritise the collective good.

Cheta Nwanze is a partner at SBM Intelligence.