The Nigeria Employers’ Consultative Association (NECA), today, called on the Federal Government to institutionalise wage policy machinery that can automatically adjust wages or hedge them against inflation.
NECA’s Director-General, Adewale-Smatt Oyerinde, who made the call in a statement in Lagos, said such a policy is practiced in other climes.”
He argued 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.
“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.”
Oyerinde also noted that the current National Minimum Wage of N30,000 came into effect in 2019 after a structured negotiation by the wage committee, whose recommendation was approved by the government and signed into law.
He said the committee comprised NECA, the Nigeria Labour Congress (NLC), Trade Union Congress (TUC), and the government, in line with the International Labour Organisation Convention 131 – the Minimum Wage Fixing Convention.
He noted that “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.”
He also advised the government to restructure the fiscal and monetary policies to be pro-growth by addressing “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.
“Decisively deal with the government’s revenue challenge and the general inhospitable business environment.”
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.
