The Nigeria Employers’ Consultative Association (NECA) has stressed the importance of tripartite negotiations involving the Federal Government, employers, and organised labour in determining the national minimum wage. According to NECA, this process is crucial for ensuring that the minimum wage is sustainable and does not undermine business operations or threaten employment. NECA's Director-General, Adewale-Smatt Oyerinde, emphasized that any minimum wage determination must balance workers' needs with employers' capacity to pay, productivity, and enterprise sustainability.
NECA's position comes as the Federal Government and organised labour continue to engage in discussions over workers' welfare, purchasing power, and the rising cost of living. The employers' body noted that the process must be inclusive, transparent, and evidence-based, in line with relevant conventions and recommendations of the International Labour Organisation (ILO). NECA acknowledged workers' concerns over the deteriorating purchasing power but maintained that bilateral agreements cannot substitute for the statutory tripartite process.
The President of Nigeria Labour Congress (NLC), Joe Ajaero, has questioned the Trade Union Congress' (TUC) rejection of the Federal Government's proposed N70,000 transport allowance. Ajaero stated that the NLC had made it clear from the beginning that it was negotiating independently of the TUC, making the latter's opposition to the outcome surprising. He argued that the TUC did not sign the agreement and therefore should not oppose an arrangement it did not negotiate.
Ajaero also noted that raising the national minimum wage to N1 million would not resolve Nigeria's economic crisis. Instead, he emphasized that reducing the cost of living and strengthening the naira's purchasing power were critical to improving workers' welfare. The labour leader stressed that the central issue was not simply how much workers earned but what their wages could buy amid rising living costs.
NECA cautioned against treating the national minimum wage as an automatic salary increase for all categories of workers. The association suggested that consequential adjustments and general wage increases should be addressed through collective bargaining, contractual arrangements, and enterprise-level negotiations. Oyerinde urged the government, employers, and organised labour to adopt a transparent, credible framework for determining wages.
The dispute comes as organised labour continues to press for measures to cushion workers against the effects of rising transportation costs and the wider cost-of-living crisis. Ajaero maintained that any general wage increase must follow the appropriate negotiation process involving the relevant stakeholders. The NLC president emphasized that wage increases alone would not address the underlying economic challenges confronting workers if the cost of goods and services remained high.
The conference, themed ‘The Future of Work: Minimum Wage, Economic Reforms and the 2027 Elections,’ brought together issues of workers' welfare, economic policy, and employment prospects ahead of the next general elections. Oyerinde said minimum wage reviews should consider workers' living costs, prevailing economic conditions, productivity, and businesses' financial capacity to sustain employment. He warned that wage increases detached from economic realities could put additional pressure on enterprises and undermine job creation.
Key points
- NECA emphasizes the need for tripartite negotiations in determining the national minimum wage.
- The NLC and TUC have differing views on the proposed N70,000 transport allowance.
- A general wage increase must follow the appropriate negotiation process involving relevant stakeholders.
