The Nigeria Employer’s Consultative Association (NECA) has said that minimum or living wage should be based on ability to pay, hence the need for the government to create an environment that support sustainable enterprise in the country.
Wale-Smatt Oyerinde, the director-general of NECA, stated this in response to the move by the government and organised labour to raise the current national minimum wage, which he acknowledged as poor given the economic realities in the country.
“It’s pertinent to note that a realistic wage policy, whether minimum or living wage should be fundamentally 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.
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The government must put in place and institutionalise wage policy machineries that could automatically adjust wages or hedge it against inflation as done in other climes”, said Oyerinde.
He stated that the current national minimum wage of N30,000 came into effect in 2019 after a structured negotiation by the National Minimum Wage Committee, which comprised the Nigeria Employers’ Consultative Association (NECA), NLC/TUC and government, in line with the International Labour Organization (ILO) Convention 131 – the Minimum Wage Fixing Convention.
“The recommendation of the committee was approved by the government and signed into law. Statutorily, the current minimum wage age 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.”
The NECA DG said in view of the fact that the 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, it has become imperative that the government put in place the machinery for national minimum wage negotiation, concurrently.
He added that urgent efforts should be made to stabilise 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.
