The Nigeria Employers’ Consultative Association (NECA) has urged the Federal Government and organised labour to respect the principle of tripartism in ongoing discussions surrounding the National Minimum Wage, warning that excluding employers from negotiations could undermine businesses, investment and employment.
The association maintained that employers must participate as equal social partners in determining minimum wage policies, arguing that any agreement reached without their involvement could create economic and operational challenges for businesses already grappling with rising costs.
NECA’s position comes amid continuing concerns over workers’ purchasing power, the rising cost of living and the need to ensure that minimum wage adjustments reflect prevailing economic realities.
In a statement signed by its Director-General and Chief Executive, Adewale-Smatt Oyerinde, the association acknowledged the legitimate concerns of Nigerian workers over declining purchasing power and mounting financial pressures.
However, it warned that wage decisions that fail to consider the financial capacity of employers could threaten business sustainability, discourage investment and potentially lead to job losses.
According to the association, the determination of the National Minimum Wage is fundamentally a tripartite process involving government, employers and workers, with each party having a recognised role in reaching a sustainable agreement.
It stressed that bilateral discussions between the Federal Government and organised labour should not replace the established statutory and international framework governing minimum wage negotiations.
NECA argued that employers, as the providers of jobs and operators of businesses across different sectors, possess important information about productivity, operating expenses, market conditions and the capacity of enterprises to absorb additional wage costs.
It added that their participation is essential to ensuring that wage agreements are not only beneficial to workers but also economically sustainable for businesses, particularly small and medium-sized enterprises.
The association’s intervention highlights the delicate balance policymakers must maintain between improving workers’ welfare and protecting the productive capacity of the private sector.
For many Nigerian businesses, rising energy costs, foreign exchange pressures, taxation, financing expenses and other operating challenges have continued to affect profitability and expansion plans.
NECA therefore called for constructive engagement among the government, labour unions and employers, insisting that a sustainable minimum wage framework must protect workers’ interests without undermining enterprise survival and employment opportunities.
