The Nigeria Employers’ Consultative Association (NECA) has urged President Bola Tinubu’s government to institutionalise wage policy machinery that could automatically adjust wages or hedge them against inflation as done in other climes.
NECA’s director-general, Adewale-Smatt Oyerinde, made the call in a statement on Tuesday in Lagos.
“It is pertinent to note that a realistic wage policy, whether minimum or living wage, should be fundamentally based on sustainable enterprises, productivity and economic development,” Mr Oyerinde stated.
He explained that beyond the anticipated national minimum wage negotiation, creating an environment that ensures enterprise sustainability will promote regular and seamless wage adjustments and ensure an upscale in Nigerians’ general standard of living.
“Government must put in place and institutionalise wage policy machinery that could automatically adjust wages or hedge it against inflation as done in other climes,” noted the NECA chief.
Mr Oyerinde noted that the current National Minimum Wage of N30,000 came into effect in 2019 after a structured negotiation by the wage committee.
The committee, he said, comprised of NECA, the Nigeria Labour Congress, Trade Union Congress, and the government, in line with the International Labour Organisation Convention 131 – the Minimum Wage Fixing Convention.
He said the committee’s recommendation was approved by the government and signed into law.
“Statutorily, the current minimum wage is due for a review. Thus, it is expected that the machinery for setting a new NMW, effective 2024, should be put in place to commence its assignment as urgently as possible,” the NECA director-general stated.
He called for stabilising the economy by refocusing the fiscal and monetary policies to be pro-growth.
“Also, address the challenge of multiplicity of taxes and levies; deal with strangulating regulations that appear to stifle productive activities rather than promote them; address the increasing inflation rate,” added the NECA director-general. “Decisively deal with the government’s revenue challenge and the general inhospitable business environment.”
(NAN)