The Nigeria Employers’ Consultative Association (NECA) has raised worry over rising living costs, stating that “the minimum wage of N70,000 has actually been eroded by the current realities.”
Adewale-Smatt Oyerinde, Director-General of NECA, stated that most private sector businesses paid more than N70,000 even before we decided on the figure. After the law was passed, the key minority who were not paying up to N70,000 did what was necessary to raise the minimum wage to comply with the legislation.
Before we began negotiating minimum wage, the private sector took the bull by the horns and continued to support their employees. We know of businesses that quadrupled salaries even before we began negotiating the minimum wage. Businesses have implemented hybrid work arrangements, where employees work three days in the office and two days at home to cut commuting costs and other expenses.
So it is a challenge for the private sector because you must create an inherently motivating atmosphere to keep your employees engaged. You must also establish an environment that supports them on an external level, because an employee who is unhappy at home is unlikely to be pleased at work, and you will rarely get the best out of such individuals.
“It has been a challenge for the private sector. Despite the current economic squeeze, the private sector has been able to develop many innovations, modes, models, and procedures to keep employees motivated. “The cost of electricity increased after the minimum wage was considered. Despite the introduction of CNG buses, travel costs remain high. The challenges have not vanished; they still exist. So the reform is expected to have favourable results.
“In places where the government reduces or eliminates subsidies, the funds should be reinvested in public infrastructure. Let the roads be motorable. Let there be an effective and efficient public transport system so that people do not have to drive their automobiles if they do not choose to. They can board an efficient public bus or rail.
Let the money be reinvested in security so that we can provide security in the hinterland, allowing farmers to return to their farms, produce, and harvest. The more farmers harvest, the more they can market their products. The natural conclusion is that the prices of products and services will fall. So, when we talk of wage goods, they refer to food, transportation, and shelter.
If you address those three critical issues, transportation through an effective mass transportation system, food and food security by creating an environment in which farmers can plant, harvest, and provide shelter for individuals, you will have significantly addressed the core challenges that the average person faces.
“So, contemporary realities have reduced the N70,000 minimum wage. However, it is not a simple two plus two equals four argument. Stakeholders should not avoid this interaction. We must continue to engage and be imaginative in our participation so that businesses, workers, and the nation may all succeed.”
