Follow Us on Google
From Adanna Nnamani, Abuja
Amid renewed calls for higher salaries, the Nigeria Employers’ Consultative Association (NECA) has warned that unrealistic minimum wage increases could undermine business sustainability, weaken compliance and threaten employment.
It urged stakeholders to consider prevailing economic conditions and productivity in determining workers’ remuneration.
The Director-General of NECA, Mr Adewale-Smat Oyerinde, gave the warning in a goodwill message at the 2026 Annual Labour Conference of the Labour Correspondents’ Association of Nigeria (LACAN), held under the theme “The Future of Work: Minimum Wage, Economic Reforms and the 2027 Elections”, in Abuja on Thursday.
Oyerinde, who was represented by Mr Idorenyin Brooks, said the association recognised the need for fair remuneration that protects workers’ dignity and purchasing power, noting that wage determination must also take into account employers’ ability to pay and the need to sustain businesses and create jobs.
He said NECA, through the Organised Private Sector of Nigeria, actively participated in negotiations that produced the current N70,000 national minimum wage.
According to him, a sustainable wage policy must balance workers’ needs with economic realities, productivity and the capacity of enterprises to remain operational.
“Unrealistic wage increases could undermine business sustainability, compliance and employment,” he said.
The NECA chief urged the Federal Government to ensure that minimum wage determination followed a transparent and credible process that considered decent living standards, economic realities, productivity, enterprise sustainability and job creation.
He advocated an International Labour Organisation-guided framework to help Nigeria establish a fair and realistic minimum wage capable of improving workers’ welfare while supporting inclusive economic growth and industrial harmony.
Oyerinde said the process should be based on reliable data on household needs, wages, prices, productivity and employment, stressing the importance of meaningful consultations among government, employers and organised labour.
He added that decisions on wages should balance workers’ needs with economic development, productivity and employment prospects, while making adequate provisions for implementation and periodic review.
The NECA director-general also called on the government to address structural challenges driving up the cost of doing business, including high energy and transportation costs, unreliable electricity, multiple taxes, insecurity, limited access to affordable credit and inadequate infrastructure.
Other News
He said addressing these constraints would improve productivity, strengthen enterprises and help protect workers’ living standards.
On economic reforms, Oyerinde said NECA supported transparent and properly sequenced policies capable of encouraging investment and job creation while protecting vulnerable households and businesses.
He identified tax simplification, a predictable business environment and sustainable business practices as important measures for promoting economic growth.
Ahead of the 2027 general elections, the NECA chief urged political and other stakeholders to prioritise employment creation, enterprise development, workers’ welfare, social protection and economic stability above partisan interests.
He also highlighted the role of the media in promoting accurate and balanced reporting to strengthen accountability and constructive dialogue among government, employers and workers.
Oyerinde urged participants at the conference to develop practical recommendations that would balance workers’ welfare with productivity, enterprise sustainability and job creation.
He said Nigeria’s future of work must be inclusive and technology-driven, anchored on decent work, social justice and competitive enterprises.
He further disclosed that NECA was investing in workforce development through its ICT academies in Lagos and Abuja, to equip Nigerians with skills in artificial intelligence, data analytics, cybersecurity and other emerging technologies.
The warning comes amid renewed disagreements between the Federal Government and organised labour over measures to cushion the effects of economic hardship on workers. The government recently approved a N70,000 monthly transport allowance for six months, beginning in November, following a conciliation meeting with the Nigeria Labour Congress (NLC) on October 27.
However, the Trade Union Congress of Nigeria (TUC) rejected the arrangement, describing it as a temporary measure that would neither adequately address workers’ hardship nor provide lasting financial security. The congress called for a substantial salary increase, arguing that workers needed sustainable improvements in their earnings rather than temporary allowances.
The debate has also highlighted concerns over the rising cost of living, workers’ purchasing power and the capacity of businesses to absorb higher labour costs amid prevailing economic challenges. While organised labour has continued to demand improved wages and better working conditions, employers have emphasised the need to balance workers’ welfare with productivity, business sustainability and job creation.
