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By Bimbola Oyesola
Against the backdrop of the call for a new minimum wage for workers to cushion the effects of inflation and the increase in the pump price of petrol, the Nigerian Employers’ Consultative Association (NECA) has urged the Federal Government to give more priority to the sustainability of the economy through viable enterprises.
Director-general of NECA, Wale-Smatt Oyerinde, speaking at the 111th International Labour Conference (ILC) in Geneva, Switzerland, said it was pertinent that a realistic wage policy, whether minimum or living wage, should be based on sustainable enterprises, productivity and economic development.
“Thus, beyond the anticipated national Minimum Wage negotiation, creating an environment that ensures enterprise sustainability will not only promote regular and seamless wage adjustments, it will also ensure an upscale in the general standard of living of Nigerians,” he said.
According to the NECA’s Director General, government must put in place an institutionalize wage policy machineries that could automatically adjust wages or hedge it against inflation as done in other climes.
He reasoned that the current National Minimum wage of N30,000 came into effect in 2019 after a structured negotiation by the National Minimum Wage (NMW) Committee, which comprised of the Nigeria Employers’ Consultative Association (NECA), Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC), and Government, in line with the International Labour Organization (ILO) Convention 131 – the Minimum Wage Fixing Convention.
He recalled that the recommendation of the Committee was approved by government and signed into law. Statutorily, adding that the current Minimum Wage is due for a review, “thus, it is expected that the machinery for setting a new National Minimum Wage, effective 2024, should be put in place to commence its assignment, as urgently as possible.”
Oyerinde however insisted that while it is important to note that socio-economic conditions over the years have rendered the N30,000 minimum wage inadequate, and the inability or refusal of some state governments to pay, have further impoverished workers and households, government doing the review must match it with attention to economic well-being of the country.
He said, “we state most responsibly, that as Government puts in place the machinery for the NMW negotiation, concurrent and urgent efforts should be made to stabilize the economy by refocusing the fiscal and monetary policies to be pro-growth; address the challenge of multiplicity of taxes and levies; deal with strangulating regulations that appear to stifle productive activities rather than promote them; address the increasing inflation rate; decisively deal with Government’s revenue challenge and the general in-hospitable business environment.”
On the student loan, the NECA scribe commended President Bola Ahmed Tinubu for signing the bill into law stating that the initiative will further strengthen education system of the less privileged
Oyerinde also noted that the issue of regulations and proper guidelines will help in the context of shaping and guiding its implementation.
In relation to subsidy removal and issue of palliatives to cushion the effects on Nigerians, the NECA Director General said government should not only focus on demand side of increasing wages, but also address issue of business environment
He emphasised on the need for a more robust social dialogue amongst social partners.
