The Organised Private Sector of Nigeria (OPSN) has raised concerns about its ability to pay the newly approved N70,000 minimum wage, citing the high cost of production as a significant burden on private organisations.
Speaking on behalf of the OPSN, the Director-General of the Nigeria Employers’ Consultative Association (NECA), Mr. Adewale-Smatt Oyerinde, commended the federal government for approving the new minimum wage but urged for reforms to strengthen the private sector’s capacity to meet this requirement.
“While we commend the president for addressing the issue of the National Minimum Wage, we also appreciate his commitment to support both sub-national entities and the organised private sector in implementing the new wage,” he said.
Oyerinde noted that during consultations with the National Minimum Wage Committee, the OPSN expressed concerns about its ability to pay the initially recommended N62,000 minimum wage.
“The N62,000 recommendation was based on the understanding and agreement with government representatives that steps would be taken to alleviate the economic burden on the organised private sector,” he said.
He called on the federal government to reverse the recent increase in electricity tariffs, ensure the Central Bank of Nigeria (CBN) redeems all outstanding forwards for companies in the productive sector, freeze the introduction of new taxes and levies on businesses for the next five years, and provide duty exemptions and subsidies on imported conversion kits.
“It’s important to note that the ability to pay is a fundamental consideration. The proposed support from the president to organised businesses should be promptly announced to enable effective planning,” he concluded.
