N500,000 Minimum Wage Unlikely in 2024, Says NECA

The Nigeria Employers’ Consultative Association (NECA) has stated that the private sector cannot meet the Nigerian Labour Congress (NLC)’s demand for a minimum wage of N500,000 this year or in the foreseeable future, given Nigeria’s economic challenges.

NECA reiterated its commitment to the previously proposed N57,000 minimum wage, which represents a substantial 90% increase.

Mr. Adewale-Smatt Oyerinde, NECA’s Director-General, highlighted the ongoing economic difficulties faced by the private sector, including rising interest rates, escalating logistics costs, increasing energy tariffs, and excessive taxes and fees.

Oyerinde emphasized that the prevailing N30,000 minimum wage was already straining businesses, with many experiencing losses and closures. He warned that meeting the NLC’s demands would jeopardize enterprise sustainability and job security.

In light of this, NECA urged the tripartite committee to prioritize job creation and security during minimum wage negotiations. Oyerinde stressed the urgent need to address the country’s rising unemployment rate and emphasized the importance of enhancing the private sector’s capacity to generate employment.

Furthermore, he underscored the importance of productivity as a key factor in determining wage increases. According to him, efforts should be directed towards retaining employment and implementing government interventions in transportation, food security, and macroeconomic stability.

In previous negotiations, the Federal Government proposed a new minimum wage of N48,000, while organized labour initially demanded N615,000 before reducing it to N500,000. However, ongoing discussions between the government and labour unions have led to the government offering around N57,000, with negotiations still ongoing.