The Manufacturers Association of Nigeria (MAN) has urged the federal government to address concerns raised by the organized private sector while negotiating the new N70,000 minimum wage. This request aims to enable manufacturers to implement the new wage agreement effectively.
MAN’s Response to the New Minimum Wage
In response to the agreement between the federal government and organized labour unions, MAN’s Director-General, Segun Ajayi-Kadir, highlighted the President’s promise to assist the private sector and sub-nationals in paying the new minimum wage. Ajayi-Kadir emphasized the need for the private sector to rely on the President’s commitment to facilitating alignment with the wage agreement.
Ajayi-Kadir stated, “We had informed the committee of the challenges facing businesses in the private sector and the necessity to address these issues to enhance our members’ ability to pay the minimum wage we offered.” He noted that these constraints could hinder MAN members’ full compliance once the minimum wage is enacted. He hoped the President would expedite consideration of these challenges and take necessary actions to address them, helping the private sector adopt the new minimum wage.
MAN’s List of Demands
Ajayi-Kadir presented several demands to help the private sector manage the new minimum wage payments:
- Exemption for SMEs and MSMEs: He recommended exempting Small and Medium Enterprises (SMEs) and Micro, Small, and Medium Enterprises (MSMEs) from compliance due to their limited capacity and operational challenges.
- Honoring Foreign Exchange Forwards: He urged the Central Bank of Nigeria (CBN) to honor all validly transacted outstanding foreign exchange forwards for companies in the productive sector, which would provide financial stability for businesses.
- Reversal of Electricity Tariff Increase: Ajayi-Kadir called to reverse the recent electricity tariff increase. Alternatively, he suggested a 100% increase in tariffs for a minimum of 20 hours of supply to ensure businesses receive adequate electricity to justify higher costs.
- Duty Exemptions and Subsidies: He proposed duty exemptions on imported conversion kits and government subsidies for their procurement.
- Freeze on New Business Taxes: Ajayi-Kadir suggested a five-year freeze on introducing new taxes to help businesses stabilize and grow.
These demands aim to alleviate the challenges faced by manufacturers and enable them to comply with the new minimum wage, ensuring the agreement’s successful implementation across the private sector.
