The Nigeria Employers’ Consultative Association (NECA) has voiced the private sector’s incapacity to meet the Nigerian Labour Congress (NLC)’s demand for a N500,000 minimum wage this year or in the foreseeable future, citing Nigeria’s economic challenges.
NECA maintained its commitment to the previously proposed N57,000 minimum wage at the Tripartite Committee meeting, which represents a substantial 90% increase.
In a statement by NECA’s Director-General, Mr. Adewale-Smatt Oyerinde, he underscored the sector’s dedication amid daunting economic hurdles like rising interest rates, surging logistics costs, escalating energy tariffs, and a plethora of taxes, levies, and fees.
Oyerinde emphasized the sector’s precarious state, with businesses declaring over one trillion naira in collective losses, closures, and relocations due to financial strains, rendering the current N30,000 minimum wage untenable.
He stressed the infeasibility of sustaining enterprises and ensuring job security under the current labour demands.
While NECA pledges continued support for workers’ welfare and job protection, Oyerinde urged the tripartite committee to prioritize job creation and security, especially given Nigeria’s alarming unemployment rate.
He redirected focus towards enhancing the private sector’s capacity for job generation and sustainability and highlighted the crucial role of productivity in wage determinations.
Citing statistics from the National Bureau of Statistics indicating a significant rise in unemployment rates, Oyerinde advocated for concentrated efforts to retain employment levels amidst government interventions in critical sectors like transportation and food security.
In the backdrop of negotiations, the rift between the Federal Government and organised labour persists, with the former proposing N48,000 as a new minimum wage, and the latter initially demanding N615,000, later scaled down to N500,000.
However, negotiations continue, with the government revising its offer to approximately N57,000, amidst unresolved disputes over substantiated data and opposing demands.
