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The Organised Private Sector of Nigeria (OPSN) has raised concerns about their capacity to afford the newly approved ₦70,000 minimum wage, citing the heavy burden of production costs on private businesses.
Mr. Adewale-Smatt Oyerinde, the Director-General of the Nigeria Employers' Consultative Association (NECA), voiced these concerns on behalf of the OPSN.
He also praised the federal government for approving the new minimum wage and called for reforms to enhance the private sector's ability to meet this new financial obligation.
"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," he said.
The NECA Director-General highlighted that during discussions with the National Minimum Wage Committee, the Organized Private Sector (OPS) raised concerns about their capacity to afford the ₦62,000 wage proposed 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 organised private sector," he said.
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He urged the federal government to reverse the rise in electricity tariffs, ensure the Central Bank of Nigeria redeems all pending forwards for companies in the productive sector, impose a five-year freeze on new taxes and levies for businesses, and grant a duty exemption on imported conversion kits along with a government subsidy for their purchase.
"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," he said