Nigerian Private Sector Raises Alarm Over Ability to Pay Newly Approved Minimum Wage
In a startling revelation, the Organised Private Sector of Nigeria (OPSN) has voiced concern over its ability to pay the recently approved N70,000 minimum wage. This development comes after President Tinubu promised to support private businesses in paying the new wage.
As the Federal Government and organized labour struck a deal on the minimum wage, many thought the matter was settled. However, the OPSN has now pushed the Federal Government to reveal the proposed support President Tinubu promised to provide the private sector.
Private organizations across the country are feeling the squeeze due to high production costs and necessities. The Director-General of the Nigeria Employers’ Consultative Association (NECA), Adewale-Smatt Oyerinde, spoke on behalf of the group, acknowledging the federal government’s approval of the new minimum wage.
“But we also need the government to take certain steps to alleviate the burden on the private sector,” he emphasized. These steps, according to NECA DG, include reversing the increase in electricity tariffs, redeeming outstanding forwards for companies, imposing a five-year freeze on new taxes and levies, and providing duty exemptions on imported conversion kits along with government subsidies.
Additionally, Oyerinde stressed that strengthening the private sector’s ability to pay through reforms is crucial. He believes this would enable companies to cope with the pressures of the new minimum wage.
Furthermore, during the consultations with the National Minimum Wage Committee, the OPS raised concerns about its ability to pay the proposed N62,000 recommended by the tripartite committee. NECA DG highlighted that this amount was premised on an understanding that the government would take decisive action to reduce the economic burden on the organized private sector.
As the debate unfolds, it remains to be seen what concrete steps the Federal Government will take to support the private sector in fulfilling its commitment to the newly approved minimum wage.
