“We Can’t Pay N70,000 Minimum Wage”: Organised Private Sector Appeals to President Tinubu for Support

The Organised Private Sector (OPS) has expressed concerns over the feasibility of implementing the newly announced N70,000 national minimum wage by President Bola Ahmed Tinubu without additional government support. This stance was articulated by Adewale-Smatt Oyerinde, the spokesperson and director general of the Nigeria Employers’ Consultative Association (NECA), amidst ongoing discussions on wage adjustments.

The declaration by President Tinubu establishing N70,000 as the new minimum wage came after negotiations with labor leaders at the Presidential Villa. Initially, the Federal Government had proposed N62,000, but this was met with resistance from labor unions, notably the Joe Ajaero-led Nigeria Labour Congress (NLC), which demanded a minimum wage of no less than N250,000. However, following President Tinubu’s engagement and the additional incentives tied to the wage proposal, the union conceded to the N70,000 figure.

Despite this resolution at the governmental level, the OPS, representing private sector employers, has voiced its inability to meet the new wage standard without external assistance. Oyerinde highlighted the sector’s appreciation for the President’s efforts to resolve the wage debate and his commitment to support both sub-national entities and the private sector in this transition.

The need for support from the government becomes crucial as the OPS plays a significant role in the nation’s economy, employing a large segment of the workforce. The increase in the minimum wage, while beneficial for workers, imposes a significant financial burden on businesses, particularly small and medium enterprises (SMEs), that are already grappling with other economic challenges.

The OPS is therefore urging President Tinubu to intervene and facilitate the necessary support mechanisms that will enable them to comply with the new wage regulations without jeopardizing their operational viability. This appeal underscores the broader implications of wage adjustments on the economic landscape and the interdependence between government policy and private sector sustainability.

As discussions continue, the OPS remains committed to collaborating with the government to find a viable path forward that supports both the welfare of workers and the health of private businesses. This situation reflects the complex dynamics of labor economics and the critical role of governmental support in ensuring equitable wage policies that align with the economic realities of all stakeholders.