Following the agreement reached on the new minimum wage by President Bola Tinubu and labour leaders on Thursday, the Organised Private Sector of Nigeria (OPSN) has expressed concern over its ability to pay the approved N70,000 minimum wage, saying private organisations are over-burdened by the high cost of production.
The Director-General of Nigeria Employers’ Consultative Association (NECA), Mr Adewale-Smatt Oyerinde, who spoke on behalf of the body, however, commended the Federal Government over the approval of the new minimum wage, urging it to put in place reforms that would strengthen private sector to be able to pay.
“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 DG noted that during the consultations with the National Minimum Wage Committee, the OPS expressed concern about its ability to pay the N62,000 recommended by the tripartite committee.
“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 DG noted that during the consultations with the National Minimum Wage Committee, the OPS expressed concern about its ability to pay the N62,000 recommended by the tripartite committee.
“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