Guardian Nigeria
Director-General of the Lagos Chamber of Commerce and Industries (LCCI), Dr Chinyere Almona, has urged all parties involved in the ongoing new minimum wage negotiation to consider a wage that reflects a balance between economic realities and affordability.
She said while a living wage should be advocated, a situation where a new wage is forced on businesses, which they might not be able to pay, will eventually lead to job losses, worsening poverty levels and higher inflation.
She urged labour to be more flexible and be more concerned about how private businesses can afford to pay the set wage without considering shutting down operations or cutting jobs.
“Beyond the new minimum wage, the chamber is more concerned about having a more productive economy with a robust infrastructural base supporting it. We urge the government to implement special non-cash interventions that will see businesses spend less on production, remove import duties on food imports and critical raw materials as well as reduce import duty exchange rate on agricultural input and other imports that have multiplier effects on prices. We should implement an aggressive metering programme on the power supply and more investment and regulation in the sector to boost power supply through more contractual discipline and gas supply guarantees and finally, build infrastructure to support local production of essential medicines and more spending to upgrade our public health facilities.”
She said if the government commits to providing support systems to Nigerians, low-income earners will spend less on expenditure and have a better living standard in the long run. She pleaded with the labour unions to consider productivity supported by infrastructure rather than high wages with weak productivity.
“The government needs to spend more on providing the infrastructural base required for a productive workforce and a conducive business environment,” she added.
Acknowledging the fiscal constraints and economic challenges some state governments face, the DG said some governors under the Nigerian Governors’ Forum (NGF) have already indicated an inability to meet the initially proposed higher wage, citing budgetary limitations and the potential risk to essential public services.
“We urge all parties to consider a wage that is within the financial capacity of both federal and state governments, one that will help maintain economic stability and prevent potential layoffs or cuts in essential services. It is also pertinent to adopt a wage that supports long-term economic sustainability. Over-extending financial commitments could increase borrowing and debt, adversely affecting the nation’s economy,” she said.
She stressed that all states can uniformly implement the new minimum wage by agreeing on a realistic and achievable wage and ensuring that workers nationwide benefit without significant delays or discrepancies.
She added that a wage demand exceeding state governments’ capacity could lead to industrial actions and widespread disruptions, further hindering economic recovery and growth of the country.
“It must also be stated that the government needs to show more seriousness about cutting down governance costs and be committed to investing more in infrastructure that supports productivity and revenue generation. With more transparency in government spending, future negotiations will become easier as all parties are well aware of the realities,” she said.
She called on the government to commit to reviewing the national minimum wage every five years and show concern about the welfare of employees by enhancing their allowances beyond the minimum wage, which is only calculated based on basic salaries.
