The Nigeria Employers’ Consultative Association has urged the Federal Government to decisively deal with the government’s revenue challenge and the generally inhospitable business environment.

In a statement on Monday, the Director General of NECA, Mr Wale Oyerinde, advised the government to make urgent efforts to stabilise the economy by refocusing fiscal and monetary policies to be pro-growth.

He said, “It is important to note that socio-economic conditions over the years have rendered the N30,000 minimum wage inadequate and the inability or refusal of some state governments to pay has further impoverished workers and households.

“We want to state most responsibly, that as the government puts in place the machinery for the national minimum wage negotiation, concurrent and urgent efforts should be made to stabilise the economy by refocusing the fiscal and monetary policies to be pro-growth. Address the challenge of a multiplicity of taxes and levies; deal with strangulating regulations that appear to stifle productive activities rather than promote them; address the increasing inflation rate; decisively deal with government’s revenue challenge and the generally inhospitable business environment.”

Oyerinde said it was pertinent to note that a realistic wage policy, whether minimum or living wage should be fundamentally based on sustainable enterprises, productivity, and economic development.

“Thus, beyond the anticipated national minimum wage negotiation, creating an environment that ensures enterprise sustainability will not only promote regular and seamless wage adjustments, it will also ensure an upscale in the general standard of living of Nigerians. Government must put in place and institutionalise wage policy machinery that could automatically adjust wages or hedge it against inflation as done in other climes.”

According to him, the current national minimum wage of N30,000 came into effect in 2019 after a structured negotiation by the National Minimum Wage Committee.

“The recommendation of the committee was approved by the government and signed into law. Statutorily, the current minimum wage is due for review. Thus, it is expected that the machinery for setting a new national minimum wage, effective 2024, should be put in place to commence its assignment, as urgently as possible,” he further remarked.

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