By JOAN NWAGWU

The Organised Private Sector of Nigeria (OPSN) has opposed the proposed increase in mandatory pension contributions, warning that the move could threaten jobs, weaken businesses and slow economic recovery.

The OPSN disclosed this in a statement by its member organisations, made available to newsmen on Thursday in Abuja.

The group comprises the Manufacturers Association of Nigeria (MAN), the Nigeria Employers’ Consultative Association (NECA), the National Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), NASME, NASSI and other employer associations.

The Director-General of NECA, Mr Adewale-Smatt Oyerinde, said announcing a contribution increase before concluding stakeholder consultations undermined confidence in the ongoing engagement process.

“The OPSN supports efforts aimed at strengthening Nigeria’s pension system and improving retirement outcomes for workers.

“However, announcing that contribution rates will increase while consultations are still ongoing risks prejudging the outcome of the process and reducing subsequent stakeholder engagements to a mere formality,” he said.

Oyerinde said any adjustment should emerge from genuine dialogue backed by credible actuarial, economic and employment-impact assessments, adding that retirement security should not come at the expense of businesses and jobs.

The Director-General of MAN, Mr Segun Ajayi-Kadir, said manufacturers were already grappling with mounting production costs, high energy prices, exchange-rate volatility and weak consumer demand.

“Imposing an additional statutory payroll cost without a comprehensive impact assessment will place further pressure on already struggling enterprises,” Ajayi-Kadir said.

He said the proposal could also slow recruitment, delay wage reviews, increase outsourcing, reduce employment and raise prices of goods and services.

The Director-General of NACCIMA, Mr Sola Obadimu, warned that imposing fresh financial obligations on employers could undermine ongoing government reforms aimed at improving business competitiveness.

“At a time when businesses are struggling to recover from prolonged economic pressures, imposing another statutory financial obligation on employers could undermine the benefits of those reforms,” Obadimu said.

Also, the Director-General of NASSI, Ifeanyi Oputa, said higher mandatory pension contributions would hit Micro, Small and Medium Enterprises (MSMEs) hardest because many already operated under severe financial constraints.

“An additional statutory burden could threaten their survival, discourage formal employment and push more businesses into informality, contrary to the objectives of the pension system,” Oputa said.

The group described the proposal by the National Pension Commission (PenCom) as a “Greek gift” that could ultimately hurt workers in spite of promises of improved retirement benefits.

They said Nigeria’s existing mandatory pension contribution of 18 per cent already compares favourably with global standards and should not be increased without Nigeria-specific actuarial and economic evidence.

The OPSN urged the Federal Government to prioritise curbing inflation, preserving workers’ purchasing power, sustaining businesses and protecting jobs before introducing additional statutory employment costs.

They also called for transparent social dialogue involving government, employers and organised labour, insisting that any future review should be guided by credible economic and employment-impact assessments.

The OPSN reiterated Its support for reforms that strengthen retirement security but maintained that such measures must balance workers’ future benefits with prevailing economic realities facing employers and employees.

They added that a strong pension system could only be sustained by thriving businesses, expanding formal employment and a stable economy, rather than increasing employment costs. (NAN)