The Organised Private Sector of Nigeria (OPSN) has raised concerns about its capacity to pay the newly approved N70,000 minimum wage, citing the high cost of production as a significant challenge.
This sentiment was expressed by the Director-General of the Nigeria Employers’ Consultative Association (NECA), Mr. Adewale-Smatt Oyerinde, who spoke on behalf of the OPSN.
While Mr. Oyerinde commended the federal government for approving the new minimum wage, he urged the government to implement reforms that would bolster the private sector’s ability to meet the wage requirements.
“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,” Oyerinde stated.
READ ALSO: Tinubu Approves 70,000 Minimum Wage After Agreement With Labour
The NECA DG highlighted that, during consultations with the National Minimum Wage Committee, the OPSN had already expressed concerns about its ability to pay the previously recommended N62,000 wage. He noted that this amount was agreed upon with the understanding that the government would take measures to alleviate the economic burden on the private sector.
“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,” Oyerinde explained.
To address these concerns, Oyerinde called on the federal government to take several actions, which include the reversal of the increase in electricity tariffs, ensuring the Central Bank of Nigeria (CBN) redeems all outstanding forwards for companies in the productive sector, Implement a freeze on new taxes and levies on businesses for the next five years, provide duty exemptions on imported conversion kits, and offer government subsidies for the procurement of these kits.
READ ALSO: NUJ Urges President Tinubu To Address Minimum Wage, ASUU Issues
“It should be noted that the ability to pay remains a fundamental consideration. The proposed support by the president for organised businesses should be immediately announced to enable businesses to plan effectively,” Oyerinde added.
The NECA DG emphasized that while the new minimum wage is a positive step, it is crucial for the government to follow through with promised support measures to ensure that private sector businesses can sustainably meet the new wage requirements.