The Director-General/Chief Executive of the Nigeria Employers’ Consultative Association (NECA), Adewale-Smatt Oyerinde, discusses the minimum wage debate, inflation, fuel prices, job creation, artificial intelligence, casualisation, and the economic commitments political parties should make ahead of the 2027 elections in this interview with GLORIA NWAFOR.

As NLC and government clash over minimum wage talks, what is NECA’s stance given shrinking worker purchasing power and employer capacity?

THE minimum wage process is governed by tripartite engagement involving government, labour and employers. Neither labour nor government should make decisions they expect to bind the third party without proper consultation.

The law was amended three years ago, and we believe the statutory timetable should be respected. However, the private sector remains open to negotiations when the appropriate committee is constituted. Workers’ needs, economic conditions, productivity and employers’ capacity to pay must guide the process. Increasing wages alone will not solve Nigeria’s economic problems. Even if the minimum wage were raised to N1 million today, inflation could erode its value.

We must collectively push for lower inflation, reduced production costs and fewer regulatory bottlenecks. Employers and workers in many private-sector industries already negotiate wages and conditions through collective bargaining.

Announcing a wage figure before negotiations is counterproductive because the eventual amount must reflect workers’ welfare, employers’ capacity and the country’s economic circumstances. I prefer negotiations to begin after the general elections, when the governance environment may be more stable.

As Nigeria enters an electioneering year, what should political parties do to protect business confidence, private investment, and economic stability?

Governance must not grind to a halt as elections approach. Political patronage must not come at the expense of the stability achieved in some areas, particularly the foreign exchange market. Although the naira remains below where we believe it should be, we must examine what has supported its relative stability and what needs to change. Government and the organised private sector must deepen their engagement.

Regulatory agencies should not introduce contradictory policies that undermine broader economic objectives. Government must also address persistent electricity challenges. Power supply improvements have not met business and household expectations. Nigeria must continue reviving its industrial base, including implementing the National Industrial Policy. Political parties and candidates should explain how they intend to sustain these priorities.

Inflation eased in September, but prices remained high. What is needed to restore workers’ purchasing power and reduce employers’ operating costs?

We commend the Central Bank of Nigeria for the relative macroeconomic stability reflected in declining inflation. However, macroeconomic improvements do not automatically translate into better living conditions.

What matters to workers is what their earnings can buy. Many spend their entire disposable income on necessities. They need to see reforms reflected in the prices of goods and services, not merely hear that inflation is declining.

Government must address production costs and the inconsistencies between the tax framework and existing laws that empower some agencies to impose additional charges. More fundamentally, government must reduce the cost of doing business. When businesses become competitive, they can expand production, employ more people and generate higher tax revenues. Workers and households will benefit, while traders, landlords, food vendors and school proprietors will gain from increased economic activity. Reducing the cost of living and the cost of doing business should therefore remain a national priority.

Can the Federal Government’s intervention to reduce petrol prices through an ex-gantry price of N1, 350 provide meaningful relief to businesses and workers?

Fuel is essential to economic activity, and demand remains relatively inelastic. People must travel to work and conduct business regardless of price increases. Someone living on the Lagos mainland and working on the island cannot shorten the distance because petrol has become more expensive. Any intervention that reduces this burden without returning Nigeria to the problems associated with the former subsidy regime is worth exploring as a short-term measure. However, Nigeria does not control developments in the international oil market, and global supply disruptions can quickly influence domestic prices.

The government should combine immediate relief with measures to expand public transportation, promote compressed natural gas (CNG)-powered vehicles and encourage electric vehicles and renewable energy. This would reduce households’ and businesses’ vulnerability to fuel-price fluctuations .

How can Nigeria make alternative energy more affordable? Would NECA support import waivers for solar-panel and battery manufacturing equipment?

Nigeria’s crude oil production should count for something for its citizens. The government could explore selling petroleum products at cost price, without excessive profits. Selling at cost price is not necessarily the same as subsidising a product. However, lower domestic prices could encourage smuggling into neighbouring countries. The government must weigh the risks of every option while seeking meaningful relief for Nigerians. In the long term, we need investment in CNG-powered transport, electric vehicles, solar power and renewable energy manufacturing.

Import waivers can support domestic production if carefully targeted at machinery, equipment and raw materials needed to establish or expand local industries. Governments must monitor such incentives to prevent abuse.

Governments must also ensure consumers benefit from public support. Some CNG buses, despite receiving government assistance, charge fares comparable to petrol-powered vehicles. Effective monitoring should ensure passengers benefit from such interventions.

Supporting local manufacturers of solar panels, batteries, and other renewable energy equipment would create jobs, reduce dependence on imports, and make alternatives more accessible.

What inflation target should Nigeria pursue, and what should political parties promise voters ahead of the 2027 elections?

Nigeria should aim for single-digit inflation. Achieving this requires addressing the fundamentals, particularly production and manufacturing. Countries such as China and the Asian Tigers demonstrate the importance of productive capacity.

Nigeria cannot rely too heavily on imports and expect sustainable economic growth without building its domestic industrial base. Political candidates should state their inflation targets and explain the specific measures they intend to adopt. They must also explain how they will tackle insecurity, which undermines production, investment and economic activity. Voters should demand clear commitments, not general promises.

How can local production strengthen the naira, and reduce foreign exchange pressures?

Currency value is influenced by demand and supply. Nigeria must reduce demand for dollars by producing locally what it currently imports.

Improving domestic manufacturing will reduce import dependence and the demand for foreign exchange. Strengthening education and healthcare will also reduce the need for Nigerians to travel abroad for services that should be available domestically. We must attract genuine foreign direct investment that establishes factories, builds businesses, and creates jobs, rather than relying excessively on portfolio investments. Our population should be an economic advantage, supported by conditions that enable Nigerians to produce, innovate and compete. Without stronger local production and investment, pressure on the naira will persist.

With the IMF warning AI could deepen unemployment in Nigeria, how is NECA equipping employers and workers to adapt?

AI is a development we cannot wish away. Workers must acquire the skills needed to remain relevant. Practical experience and the ability to use AI effectively give someone an advantage in the labour market.

NECA partners with the Industrial Training Fund to provide free AI training for young Nigerians. However, workforce development is a shared responsibility involving individuals, employers and government.

Government should establish a clear legal and governance framework for AI without unnecessarily restricting innovation. Businesses need reasonable freedom to choose technologies that improve efficiency, as long as their use complies with applicable laws and regulations.

Beyond individual responsibility, what should government do to establish a national framework for AI adoption while protecting jobs and allowing businesses to innovate?

Government can establish an appropriate legal and governance framework, but it must be carefully designed to accommodate the different circumstances in which AI is used. The framework should provide clear guidance without unnecessarily restricting innovation or creating new economic problems. Protecting jobs matters, but we must also recognise that businesses need the freedom to decide how best to deploy technology to improve their operations.

The government cannot expect businesses to generate employment and tax revenue while imposing restrictions that undermine their ability to operate efficiently.

Businesses should therefore have reasonable discretion to choose the AI tools that suit their needs, provided their use complies with the applicable legal and regulatory framework.

With 70% of Nigerian primary pupils unable to read simple texts, what reforms can build a future-ready workforce?

Inadequate infrastructure and poor learning conditions have made public schools unattractive, while rising private-school fees have made quality education less accessible. Businesses increasingly have to train and retrain workers through graduate trainee programmes, technical centres and vocational initiatives. Ideally, the education system should equip graduates with the skills employers need, rather than leave businesses to bear the full cost of workplace preparation. Nigeria needs a national policy that keeps children in school and develops relevant competencies. We advocate a dual education system combining classroom learning with practical training in structured workplace environments .

With proper regulation and supervision, this approach can produce graduates who are academically sound, technically competent and better prepared for employment. If Nigeria fails to develop the required skills today, who will operate its industries in the coming years?

Casualisation remains a concern for organised labour, particularly in banking. What is NECA’s position?

We do not support casualisation, but we support legitimate outsourcing recognised under the International Labour Organisation’s framework. This distinction matters because outsourcing should not become a way to deny workers appropriate employment protections.

The Ministry of Labour can conduct inspections, while regulators such as the Central Bank of Nigeria have responsibilities within their respective sectors. Organisations engaging in casualisation should be identified and held accountable. Workers must report violations, while organised labour should educate members about their rights. The solution requires effective enforcement, accountability and cooperation among government, employers and unions.