The Nigeria Employers' Consultative Association (NECA) has cautioned the government against implementing unrealistic minimum wage increases, warning that such moves could undermine business sustainability, weaken compliance, and threaten employment. According to NECA's Director-General, Mr. Adewale-Smat Oyerinde, wage determination must consider prevailing economic conditions and productivity to ensure fair remuneration for workers. NECA's warning comes amid renewed calls for higher salaries and ongoing debates over measures to cushion the effects of economic hardship on workers.
NECA's Director-General, Mr. Adewale-Smat Oyerinde, delivered the warning at the 2026 Annual Labour Conference of the Labour Correspondents' Association of Nigeria (LACAN) in Abuja. The conference, themed "The Future of Work: Minimum Wage, Economic Reforms and the 2027 Elections," brought together stakeholders to discuss critical issues affecting workers and the economy. Oyerinde emphasized that a sustainable wage policy must balance workers' needs with economic realities, productivity, and the capacity of enterprises to remain operational.
NECA, through the Organised Private Sector of Nigeria, actively participated in negotiations that produced the current N70,000 national minimum wage. Oyerinde noted that the association recognizes the need for fair remuneration that protects workers' dignity and purchasing power. However, he stressed that wage determination must also consider employers' ability to pay and the need to sustain businesses and create jobs. Unrealistic wage increases, Oyerinde warned, could have adverse consequences for businesses and employment.
The NECA chief urged the Federal Government to ensure that minimum wage determination follows a transparent and credible process that considers decent living standards, economic realities, productivity, enterprise sustainability, and job creation. He advocated for an International Labour Organisation-guided framework to help Nigeria establish a fair and realistic minimum wage capable of improving workers' welfare while supporting inclusive economic growth and industrial harmony.
Oyerinde called for meaningful consultations among government, employers, and organised labour in determining wages. He emphasized the importance of reliable data on household needs, wages, prices, productivity, and employment in making informed decisions on wages. The NECA director-general also urged the government to address structural challenges driving up the cost of doing business, including high energy and transportation costs, unreliable electricity, multiple taxes, insecurity, limited access to affordable credit, and inadequate infrastructure.
Ahead of the 2027 general elections, Oyerinde urged political and other stakeholders to prioritize employment creation, enterprise development, workers' welfare, social protection, and economic stability above partisan interests. He highlighted the role of the media in promoting accurate and balanced reporting to strengthen accountability and constructive dialogue among government, employers, and workers. NECA is investing in workforce development through its ICT academies in Lagos and Abuja to equip Nigerians with skills in emerging technologies.
The debate over minimum wage increases has sparked renewed disagreements between the Federal Government and organised labour. The government recently approved a N70,000 monthly transport allowance for six months, beginning in November. However, the Trade Union Congress of Nigeria (TUC) rejected the arrangement, calling for a substantial salary increase. The TUC argued that workers need sustainable improvements in their earnings rather than temporary allowances.
Key points
- NECA warns against unrealistic minimum wage increases that could undermine business sustainability and employment.
- The Nigeria Employers' Consultative Association advocates for a transparent and credible process for determining minimum wage.
- NECA emphasizes the need for meaningful consultations among government, employers, and organised labour in determining wages.
