The Nigeria Employers’ Consultative Association (NECA) has called on the Federal Government to institutionalise wage policy machinery that could automatically adjust wages or hedge them against inflation.
This is coming on the heels of the current National Minimum Wage (NMW) that is due for review. The employers’ body said it was expected that the machinery for setting a new national minimum wage, effective 2024, should be put in place to commence its assignment, as urgently as possible.
Director-General of NECA, Adewale-Smatt Oyerinde, said beyond the anticipated minimum wage negotiation, creating an environment that ensures enterprise sustainability would not only promote regular and seamless wage adjustments, it would also upscale living standard of Nigerians.
He said a realistic wage policy, whether minimum or living wage should be fundamentally based on sustainable enterprises, productivity and economic development. As done in other climes, he said the machinery would automatically adjust wages or hedge them against inflation.
The NECA chief said the socio-economic conditions over the years had rendered the N30,000 minimum wage inadequate and inability or refusal of some state governments to pay, had further impoverished workers and households.
Oyerinde said as the government puts in place machinery for the NMW negotiation, concurrent and urgent efforts should be made to stabilise the economy, by refocusing the fiscal and monetary policies to be pro-growth and address the challenge of a multiplicity of taxes and levies.
He said government must also deal with regulations that appear to stifle productive activities rather than promote them. He stated that government must address the increasing inflation rate and decisively deal with the government’s revenue challenge and inhospitable business environment.
According to him, the current NMW of N30,000 came into effect in 2019 after a structured negotiation by the NMW committee, which comprised NECA, Nigeria Labour Congress (NLC)/ Trade Union Congress of Nigeria (TUC) and government, in line with the International Labour Organisation (ILO) Convention 131 – the Minimum Wage Fixing Convention.
“The recommendation of the committee was approved by government and signed into law. Statutorily, the current minimum wage is due for 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,” he said.
