The Nigeria Employers’ Consultative Association emphasizes the continued commitment of the private sector to the N57,000 proposed at the Tripartite Committee meeting on National Minimum Wage.
In a statement on Sunday, NECA’s Director-General, Adewale-Smatt Oyerinde, highlighted that the amount reflected a significant 90% increase in the national minimum wage.
Oyerinde mentioned that, despite the ongoing challenges, the situation has been exacerbated by rising interest rates, high logistics costs, increasing energy tariffs, and numerous taxes, levies, and fees.
Amidst a wave of economic challenges, numerous businesses have reported significant losses, leading to closures and relocations. As a result, the feasibility of meeting the current N30,000 wage has been severely compromised.
“With the current demands of organized labor, guaranteeing enterprise sustainability and job security will be practically impossible,” he said.
The director-general emphasized the importance of NECA’s ongoing support for workers’ welfare and job security, highlighting that the survival of the enterprise is crucial in ensuring these guarantees.
After discussions about the national minimum wage, he emphasized the importance of the tripartite committee focusing on job creation and job security.
Oyerinde stated that the call was made due to the concerning and escalating rate of unemployment in the country.
He suggests that the committee should shift its focus towards job protection, enhancing the private sector’s ability to generate employment, and ensuring long-term sustainability and financial feasibility.
According to him, higher wages should be influenced by productivity.
The National Bureau of Statistics reported that the rate of unemployment and time-related underemployment as a share of the labor force population (LU2) rose to 17.3% in Q3 2023, up from 15.5% in Q2 2023.
The unemployment rate saw a significant increase in Q3 2023, reaching 5.0 percent.
“Given these figures, it is crucial to prioritize efforts towards maintaining employment rates while the government focuses on implementing its planned interventions in transportation, food security, and overall macro-economic stability,” stated Oyerinde.