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October 8, 2025 - 12:42 PM

How Poor Salaries Threaten the Future of Organizations and Sectors

The recent revelation by a former Vice Chancellor of the University of Lagos that 239 first-class lecturers have resigned due to poor pay is not just a UNILAG problem, it is a stark warning to every institution, sector, and organization in Nigeria. When highly skilled professionals who should be shaping the future of a nation are forced to abandon their calling because their salaries cannot sustain a dignified life, the ripple effects are far-reaching and deeply damaging.

At the heart of every successful organization lies its human capital. Salaries are not just monthly payments; they are a recognition of value, an instrument of motivation, and a tool for retention. When organizations fail to provide competitive and fair compensation, they risk a silent but devastating brain drain. In the case of UNILAG, losing over 200 first-class brains means losing hundreds of hours of academic investment, research potential, and mentorship that would have inspired generations of students.

Poor salaries breed frustration. Staff who feel undervalued become disengaged, productivity drops, and innovation suffers. In academic settings, this translates to fewer research outputs, lower global rankings, and graduates who are less equipped for a competitive world. In the corporate sector, it manifests as high turnover, weak customer service, and declining profitability. For government institutions, it means a weakened civil service incapable of delivering on policies or serving the people effectively.

The danger goes beyond the immediate loss of talent. Poor remuneration fuels corruption and compromise. An underpaid workforce is more likely to cut corners, engage in unethical practices, or seek side hustles that distract from their primary duties. In critical sectors like health, education, and security, this is not just an organizational weakness—it is a national security risk. An underpaid doctor may prioritize private patients over public ones. A poorly paid lecturer may ignore research and pursue consultancy jobs. A security officer who cannot feed his family may be tempted by compromise.

What is often forgotten is that fair wages are not just a moral obligation but a legal right. The 1999 Constitution of the Federal Republic of Nigeria (as amended) in Section 17(3)(a) provides that “the State shall direct its policy towards ensuring that all citizens, without discrimination on any group whatsoever, have the opportunity for securing adequate means of livelihood.” Furthermore, Section 17(3)(f) emphasizes that conditions of work must be just, humane, and that adequate facilities for leisure and social welfare should be provided.

Nigeria’s Labour Act (Cap L1, LFN 2004) also reinforces this by requiring fair terms of employment and prohibiting contracts that impose conditions less favorable than those established by law. Internationally, Nigeria is a member of the International Labour Organization (ILO) and a signatory to several conventions, including ILO Convention No. 100 on Equal Remuneration (1951) and Convention No. 131 on Minimum Wage Fixing (1970). These instruments emphasize that workers should be paid wages that reflect fairness, dignity, and a standard of living consistent with human decency.

Organizations that think they are saving costs by paying low wages are in fact digging their own graves. The hidden costs of constant recruitment, retraining, and lost institutional knowledge far outweigh the supposed savings. A workplace that cannot retain talent loses continuity, erodes its reputation, and becomes unattractive to the best minds.

The UNILAG case should serve as a mirror. If a premier university, once a hub of intellectual excellence, is hemorrhaging its finest because salaries cannot keep pace with economic realities, what hope do other institutions have? The same pattern is playing out in hospitals, private firms, NGOs, and public offices across Nigeria. The brightest are leaving, and those who stay are demoralized.

The solution is neither mysterious nor impossible. Compensation must reflect value and market realities. Performance-linked salary structures, regular reviews to account for inflation, and non-monetary incentives such as housing, health insurance, and training opportunities are critical. More importantly, there must be a deliberate commitment from leadership to see salaries as investments in productivity, not expenses to be minimized.

An organization without a motivated workforce is like a car without fuel—it may look good from the outside, but it is going nowhere. Nigeria cannot afford to continue watching its best minds exit one workplace after another. The exodus from UNILAG should not be treated as just another headline but as a wake-up call: poor salaries are not just unfair, they are a breach of constitutional and international obligations. They cripple systems, destroy institutions, and ultimately undermine national progress.

Until organizations – public and private alike—realize that fair pay is the foundation of sustainable growth, the cycle of resignation, low productivity, and mediocrity will persist. In a world competing for talent, Nigeria cannot afford to keep losing its finest to poor compensation.

Samuel Jekeli a Human Resources Professional writes from Abuja.

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