The Nigeria Employers’ Consultative Association (NECA) has stated that the private sector can’t meet the Nigerian Labour Congress (NLC)’s N500,000 minimum wage demand in 2024 or any time soon due to the country's economic problems.

According to NECA, the private sector is still committed to the previously proposed N57,000 at the Tripartite Committee meeting on the National Minimum Wage.

NECA’s Director-General, Mr Adewale-Smatt Oyerinde, in a statement on Sunday, May 26, disclosed that the private sector’s proposal represents a 90% increase in the national minimum wage.

Oyreinde stated: “With organised businesses declaring over one trillion naira in combined losses and many shutting down their businesses for different reasons, while others are relocating to other climes, the ability to pay the prevailing N30,000 was already compromised.

“It will be practically impossible to guarantee enterprise sustainability and job security with the current demands of organised labour."

Oyerinde however stressed that NECA would continue to support workers’ welfare and job protection, adding that these can only be ensured through the survival of enterprises.

He also added that productivity should be a key driving force for higher salaries.

He stated: “According to the National Bureau of Statistics, the combined rate of unemployment and time-related underemployment as a share of the labour force population (LU2) increased to 17.3 per cent in Q3 2023 from 15.5 per cent in Q2 2023. In specific terms, the unemployment rate increased significantly in Q3 2023 at 5.0 per cent.

“With these figures, more efforts should be concentrated on keeping more people in employment, while the government continues to implement its planned interventions in transportation, food security and general macro-economic stability."