In a resolute stance, the Nigeria Employers’ Consultative Association (NECA) reaffirmed the private sector’s unwavering commitment to the earlier proposed N57,000 minimum wage set forth during the Tripartite Committee meeting.
Mr. Adewale-Smatt Oyerinde, NECA’s Director-General, emphasized in a statement released on Sunday that the proposed amount signifies a substantial 90% increase in the national minimum wage, underlining the private sector’s dedication to advancing workers’ welfare.
Oyerinde pointed out the prevailing challenges exacerbated by rising interest rates, exorbitant logistics costs, escalating energy tariffs, and a myriad of taxes and levies. These factors have placed immense strain on businesses, with many reporting staggering losses totaling over one trillion naira. Some have even resorted to closure, while others are contemplating relocation to more favorable environments.
“The current demand of organized labor to sustain the existing N30,000 minimum wage presents a formidable obstacle to enterprise sustainability and job security,” Oyerinde remarked.
While reiterating NECA’s commitment to safeguarding workers’ welfare and job security, Oyerinde urged the tripartite committee to pivot its focus towards fostering job creation and stability. He emphasized the urgent need to address the alarming unemployment rate, which stood at 17.3% in Q3 2023 according to the National Bureau of Statistics.
“In light of these statistics, concerted efforts must be directed at preserving existing jobs while bolstering the private sector’s capacity to generate employment opportunities,” Oyerinde stressed.
He further advocated for a reevaluation of productivity as a primary determinant of wage increments, emphasizing the necessity for sustained government interventions in critical sectors such as transportation, food security, and macroeconomic stability to mitigate the employment crisis.