The Nigeria Employers’ Consultative Association (NECA) has urged the Federal Government to institutionalize wage policy machinery that could automatically adjust wages or hedge it against inflation as done in other climes.
NECA’s Director-General, Mr Adewale-Smatt Oyerinde, made the call in a statement on Tuesday in Lagos.
“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.
“Thus, beyond the anticipated national minimum wage negotiation, creating an environment that ensures enterprise sustainability will not only promote regular and seamless wage adjustments, it will also ensure an upscale in the general standard of living of Nigerians.
“Government must put in place and institutionalize wage policy machineries that could automatically adjust wages or hedge it against inflation as done in other climes, “ he said.
Oyerinde noted that the current National Minimum Wage (NMW) of N30,000 came into effect in 2019 after a structured negotiation by the NMW Committee.
The committee, he said, comprised of NECA, Nigeria Labour Congress, Trade Union Congress of Nigeria, and government, in line with the International Labour Organisation Convention 131 – the Minimum Wage Fixing Convention.
He said that the recommendation of the committee was approved by government and signed into law.
“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.
“We state most responsibly, that as government puts in place the machinery for the NMW negotiation, concurrent and urgent efforts should be made to stabilize the economy by refocusing the fiscal and monetary policies to be pro-growth.
“Also, address 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 government’s revenue challenge and the general inhospitable business environment, “ the director-general said.
