This paper focuses on the challenges of wage administration in Nigeria. It evaluates the nature, dimension and impact of the challenges of wage administration in the context of income inequality and administration in Nigeria. The paper adopted the content analysis in its methodology. In this context, the paper reviewed existing literature on income distribution inequality and challenges of wage administration in Nigeria and other climes in addition to other secondary data and informal observations. The results of the analysis of existing secondary data and literature established that income inequality and distribution have been the bane, purveyor and harbingers of the myriads of challenges bedeviling the development administration in Nigeria. The paper in its conclusion proffers some feasible panacea to the myriads of the challenges of wage administration in Nigeria. Keywords: Income inequality, Income distribution, Wage administration,Nigeria, Socio-economic development.