Economy

N70,000 Minimum Wage Falls Short: NECA Calls for Structural Fixes

Published

2 days ago

Jan 2, 2025.

Neca expresses Concerns on New Minimum wage
Says amount is still not enough to survive on monthly
Policies still need to be address in other to procur adequate solution

The Nigeria Employers’ Consultative Association (NECA) has raised concerns over the viability of the N70,000 minimum wage amidst escalating living costs.

NECA’s Director-General, Adewale-Smatt Oyerinde, noted that while the minimum wage was implemented to alleviate workers’ struggles, current economic realities have diminished its value.

“Most private sector organizations were already paying above N70,000 before the law was passed,” Oyerinde stated. “The minority who weren’t have since adjusted. Yet, the impact of inflation, rising transportation costs, and higher electricity tariffs has eroded the purchasing power of this wage.”

EDITOR’s PICK
New refineries: FG To Slash Crude Allocation To Dangote Refinery
Tax Bill At The Detriment Of Nigeria’s Unity – Kano Govt
No More ₦70,000 – Labour Calls for New Minimum Wage Hike in 2025

He highlighted innovative steps taken by businesses to support their employees despite economic challenges. These measures include salary increases, hybrid work models to reduce commuting costs, and other motivational initiatives. However, Oyerinde emphasized that systemic reforms are critical to achieving long-term relief for workers and businesses alike.

“The private sector has shown resilience, but the government must act decisively,” he said. “Funds saved from subsidy removal should be reinvested into public infrastructure, such as efficient transportation systems, motorable roads, and enhanced security, especially in rural areas where farmers are most affected.”

Oyerinde stressed that addressing “wage goods”—food, transportation, and housing—would significantly ease the burden on workers. He cited the importance of creating an environment where farmers can produce and transport goods without hindrance, thereby reducing food prices.

FURTHER READING
Oluremi Tinubu Calls for Unity to Rebuild Nigeria in 2025
Faith2025: Bishop David Oyedepo’s New Year Prophetic Declarations
Local Government Autonomy Not Threat to Your Authority – Tinubu Assures Governors

“The minimum wage issue isn’t just arithmetic,” he added. “It requires constant dialogue, innovation, and collaboration among stakeholders to ensure workers, businesses, and the nation thrive.”

NECA’s call underscores the pressing need for policies that balance wage growth with structural reforms to mitigate the impact of economic pressures on Nigeria’s workforce.