The Nigeria Employers’ Consultative Association (NECA) has warned that unrealistic increases in the national minimum wage could threaten business sustainability, undermine compliance and weaken employment generation, urging the Federal Government to adopt an evidence-based approach to wage determination.
NECA Director-General, Mr Adewale-Smat Oyerinde, stated this at the 2026 Annual Labour Conference of the Labour Correspondents’ Association of Nigeria (LACAN) on Thursday in Abuja, where he stressed the need to balance workers’ welfare with employers’ capacity to pay, productivity and prevailing economic realities.
The conference, with the theme, “The Future of Work: Minimum Wage, Economic Reforms and the 2027 Elections,” brought together stakeholders to examine the relationship between wages, economic reforms, employment and the changing world of work
Oyerinde, who was represented by Mr Idorenyin Brooks, said wage determination must protect workers’ dignity and purchasing power without imposing unsustainable costs on businesses.
He said: “NECA recognises the need for fair remuneration that protects workers’ dignity and purchasing power. Through the Organised Private Sector of Nigeria, we actively participated in the negotiations that produced the current N70,000 minimum wage.”
The NECA DG however maintained that wage decisions must take into account workers’ needs, economic conditions, employers’ ability to pay and productivity, warning that ignoring these factors could have adverse consequences for businesses and employment.
Oyerinde called for a transparent and credible minimum wage determination process guided by the principles of the International Labour Organisation (ILO), arguing that a balanced framework would improve workers’ welfare while supporting inclusive economic growth and industrial harmony.
According to him, such a framework should be built on reliable data on household needs, wages, prices, productivity and employment, alongside meaningful consultations involving government, employers and organised labour.
“The outcome should consider workers’ needs alongside economic development, productivity and employment prospects,” he said, adding that implementation and periodic reviews should also form part of the process.
The NECA DG further identified high energy and transportation costs, unreliable electricity, multiple taxation, insecurity, limited access to affordable credit and inadequate infrastructure as structural constraints affecting businesses and workers’ living standards.
According to him, addressing these challenges would improve productivity, strengthen enterprises and enable businesses to sustain employment while meeting their obligations to workers.
He also advocated transparent and properly sequenced economic reforms capable of attracting investment, stimulating job creation and protecting vulnerable households and businesses.
Oyerinde said NECA would continue to push for tax simplification, a predictable business environment and sustainable business practices through its environmental, social and governance initiatives.
On the future of work, he said Nigeria must prepare its workforce for the growing influence of digital technology and emerging skills, noting that NECA was investing in workforce development through its ICT Academies in Lagos and Abuja, as well as the Af Xcelerate initiative.
He said the initiatives were designed to equip Nigerians with skills in artificial intelligence, data analytics, cybersecurity and other emerging technologies needed to remain competitive in the evolving labour market.
As the country approaches the 2027 general elections, Oyerinde urged political actors and other stakeholders to prioritise employment creation, enterprise development, workers’ welfare, social protection and economic stability over partisan interests.
“As a non-partisan employers’ organisation, NECA urges stakeholders ahead of the 2027 elections to prioritise employment creation, enterprise development, workers’ welfare, social protection and economic stability above partisan interests.”
He also challenged the media to promote accurate, balanced and informed reporting capable of strengthening accountability and encouraging constructive dialogue among government, employers and workers.
Oyerinde urged participants at the conference to produce practical recommendations that would reconcile workers’ welfare with productivity, enterprise sustainability and job creation.
“Nigeria’s future of work must be inclusive, technology-driven and anchored in decent work, social justice and competitive enterprises,” he added.
Earlier, the Chairman of the Labour Correspondents’ Association of Nigeria (LACAN), Patrick Abulu, called on labour journalists to deepen national conversations on minimum wage, economic reforms and workers’ welfare as Nigeria approaches the 2027 general elections.
He said the conference came at a critical time, with the Federal Government and organised labour engaged in crucial negotiations over the national minimum wage, implementation of palliatives and economic reforms affecting the cost of food, transportation, energy and healthcare.
Abulu described labour correspondents as a bridge between government policies and the realities of workers, stressing that their responsibility was to communicate the impact of government decisions on Nigerians in factories, farms, offices and markets.
He said the conference was designed to contribute to informed national discourse and generate perspectives capable of guiding policymakers.
He urged stakeholders to sustain efforts towards advancing workers’ welfare, labour rights and constructive engagement among government, employers and organised labour.
