The Organised Private Sector of Nigeria (OPSN) has expressed concerns over its ability to manage the newly approved minimum wage of N70,000, attributing this to the high cost of production burdening private organizations.
Mr. Adewale-Smatt Oyerinde, speaking on behalf of the Nigeria Employers’ Consultative Association (NECA), acknowledged the federal government’s approval of the wage increase while urging for accompanying reforms to bolster the private sector’s capability to meet these new financial demands.
During consultations with the National Minimum Wage Committee, NECA emphasized their apprehensions regarding the previously recommended N62,000 wage, citing expectations that the government would implement measures to alleviate economic pressures on the private sector.
Specifically, NECA’s Director-General appealed to the federal government to reverse recent hikes in electricity tariffs, ensure prompt settlement of outstanding commitments to companies in productive sectors by the Central Bank of Nigeria, impose a moratorium on new taxes and levies on businesses for five years, and grant duty exemptions on imported conversion kits, supplemented by government subsidies for their procurement.
Highlighting the critical importance of these reforms, Mr. Oyerinde stressed that timely implementation of the government’s proposed support measures is essential for businesses to effectively plan and navigate these financial challenges.