New Minimum Wage: Private Sector Expresses Concern Over N70,000 Minimum Wage

…As high cost of production threatens private sector’s ability to pay new wage

The Organised Private Sector of Nigeria (OPSN) has expressed concern over its ability to pay the N70,000 newly approved minimum wage, saying private organisations are over-burdened by high cost of production.

The Director-General, Nigeria Employers’ Consultative Association (NECA), Mr. Adewale-Smatt Oyerinde, who spoke on behalf on the body, however, commended the federal government over the approval of the new minimum wage, urging it to put in place reforms that would strengthen private sector to be able to pay.
“While we commend the president for putting to rest the immediate issue of the National Minimum Wage, we also note, most importantly his commitment to support the sub-nationals and the organised private sector to pay the new wage,” he said.

The NECA DG noted that during the consultations with the National Minimum Wage Committee, the OPS expressed concern about its ability to pay the N62,000 recommended by the tripartite committee.

“In fact, the N62,000 was premised on the understanding and agreement by the government representatives that the government will take definite steps to reduce the current economic burden on the organized private sector,” he said.

He pleaded with the federal government to reverse the increase in electricity tariffs, ensure CBN redemption of all outstanding forwards for companies in the productive sector, put a freeze on introduction of new taxes and levies on businesses for the next five years, and provide a duty exemption on imported conversion kits and government subsidy on procurement of same.

“In fact, the N62,000 was premised on the understanding and agreement by the government representatives that the government will take definite steps to reduce the current economic burden on the organized private sector,” he said.

He pleaded with the federal government to reverse the increase in electricity tariffs, ensure CBN redemption of all outstanding forwards for companies in the productive sector, put a freeze on introduction of new taxes and levies on businesses for the next five years, and provide a duty exemption on imported conversion kits and government subsidy on procurement of same.