Minimum wage: Private sector expresses concern over ability to pay N70k
By Jude-Ken Ojinnaka
The approved N70,000 minimum wage for Nigerian workers has raised some worries on whether the Organised Private Sector of Nigeria (OPSN) can pay.
It has expressed concern over its ability to pay the newly approved minimum wage of N70,000, expressing that private organisations are already over-burdened by high cost of production.
Speaking on behalf of OPSN shortly after the annoucement of the approval of the minimum wage, the Director-General, Nigeria Employers’ Consultative Association (NECA), Mr. Adewale-Smatt Oyerinde, commended the Federal Government over the approval of the new minimum wage, but urged 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,” NECA DG said.
The 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 implored 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.
“It should be noted that the ability to pay remains a fundamental consideration. The proposed support by the president to organised businesses should be immediately announced to enable businesses to plan effectively,” Oyerinde said.