The Nigeria Employers’ Consultative Association (NECA) has called on the Federal Government and organised labour to ensure that negotiations over Nigeria’s national minimum wage strike a balance between workers’ welfare and employers’ ability to sustain their businesses.
The employers’ association said any decision on the minimum wage must reflect the rising cost of living, workers’ declining purchasing power, productivity levels and the prevailing economic conditions facing businesses across the country.
NECA’s position comes amid renewed discussions about improving workers’ earnings as Nigerians continue to grapple with the high cost of food, transportation, electricity and other essential services.
In a statement issued on Thursday and signed by its Director-General, Adewale-Smatt Oyerinde, the association acknowledged the legitimate concerns of workers but warned that wage decisions must also consider employment generation, job retention and the long-term survival of businesses.
The organisation stressed that the objective should be to improve workers’ living standards without imposing wage obligations that could weaken enterprises or threaten existing jobs.
NECA Insists Employers Must Participate in Wage Negotiations
The association maintained that determining Nigeria’s national minimum wage must follow a tripartite process involving the Federal Government, employers and organised labour as equal partners.
According to NECA, discussions between the government and labour unions alone cannot replace the established process, which requires employers to participate in negotiations that directly affect their businesses.
The organisation argued that private-sector employers should not be treated as parties to agreements reached without their participation and concurrence.
However, it clarified that its position does not remove employers’ legal obligation to comply with any national minimum wage validly established under the National Minimum Wage Act.
NECA also said it was not opposed to reviewing the minimum wage but insisted that the process must be transparent, inclusive and guided by reliable economic evidence.
It cited relevant International Labour Organisation conventions and recommendations, which provide for consideration of workers’ needs alongside economic factors when setting minimum wages.
Rising Business Costs Raise Concerns
NECA warned that businesses are already facing considerable operational pressures, including high energy costs, inflation, expensive borrowing and other financial challenges.
The association said these realities must be considered when determining wage levels, particularly because small and medium-sized enterprises may have limited capacity to absorb substantial increases in labour costs.
According to the employers’ body, wage decisions that ignore businesses’ financial capacity could undermine compliance, discourage investment and threaten employment opportunities.
It called for a practical approach that would allow workers to earn better incomes while enabling employers to remain productive, competitive and financially sustainable.
The association also argued that addressing structural challenges affecting businesses would help improve productivity and create conditions in which employers could better reward their workers.
NECA Distinguishes Minimum Wage From General Salary Increases
The employers’ association also cautioned against treating the national minimum wage as an automatic salary increase for every worker, regardless of their existing earnings or employment arrangements.
It explained that the minimum wage establishes the statutory pay floor for workers covered by the law, while consequential salary adjustments and general wage increases are separate matters.
According to NECA, such adjustments should be addressed through collective bargaining, contractual agreements and negotiations at the enterprise level.
The organisation said making this distinction would help prevent confusion during wage discussions and ensure that remuneration decisions follow appropriate procedures.
Employers Warn Against Industrial Disruption
NECA expressed concern about threats of industrial action linked to the ongoing discussions, warning that avoidable disruptions could affect production, employment security and investor confidence.
The association urged the government and organised labour to pursue constructive dialogue and use established dispute-resolution mechanisms to settle disagreements.
It said preserving industrial harmony was important at a time when businesses were working to recover from economic difficulties.
NECA maintained that the survival of businesses and the welfare of workers should not be treated as competing interests, arguing that both are necessary for national development.
A Delicate Balance for Nigeria’s Economy
The debate over the minimum wage reflects the wider challenge of improving living standards while maintaining economic stability.
For workers, higher wages could provide some relief from rising prices and help restore purchasing power. For employers, however, increased labour costs must be managed alongside expenses such as energy, transportation, taxes and access to credit.
NECA is therefore calling for a wage-setting process that considers both sides and produces an outcome that can be implemented sustainably.
The association said a credible minimum wage should protect workers, preserve jobs, sustain businesses and contribute to economic growth.
As discussions continue, the key challenge for the government, employers and labour unions will be to agree on a framework that provides meaningful relief for workers without undermining the businesses that provide employment.
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