The Nigeria Employers’ Consultative Association (NECA) has warned that unrealistic increases in the national minimum wage could undermine business sustainability, weaken compliance and threaten employment.

NECA called for evidence-based wage determination that balances workers’ welfare with employers’ capacity to pay.

Represented by a member of NECA, Abuja Geopolitical Group, Idorenyin Brooks, NECA Director-General Adewale-Smatt Oyerinde said minimum wage reviews should consider workers’ living costs, prevailing economic conditions, productivity, and businesses’ financial capacity to sustain employment.

Speaking in a goodwill message at the 2026 annual labour conference of the Labour Correspondents’ Association of Nigeria (LACAN), Oyerinde said the current minimum wage of N70,000 emerged from negotiations in which the organised private sector participated through the Organised Private Sector of Nigeria.

He urged the government, employers and organised labour to adopt a transparent, credible framework for determining wages, warning that wage increases detached from economic realities could put additional pressure on enterprises and undermine job creation.

The conference, themed ‘The Future of Work: Minimum Wage, Economic Reforms and the 2027 Elections,’ brought together issues of workers’ welfare, economic policy and employment prospects ahead of the next general elections.

Oyerinde called for a minimum wage determination process guided by International Labour Organisation principles, with reliable data on household needs, wages, prices, productivity and employment informing negotiations.

He said meaningful tripartite consultations involving government, representative employers’ organisations and workers’ organisations were necessary to produce wage decisions that protect workers’ living standards without weakening enterprises.

He said wage-setting decisions must balance decent living standards with economic development, productivity, employment prospects, and businesses’ ability to implement agreed increases.

Beyond wage negotiations, the NECA chief identified high energy and transportation costs, unreliable electricity supply, multiple taxation, insecurity, limited access to affordable credit and inadequate infrastructure as structural constraints affecting businesses and workers.

He said addressing these challenges would improve productivity, strengthen enterprises and help protect workers’ purchasing power.

Oyerinde also called for transparent, well-sequenced economic reforms that attract investment and expand employment while protecting vulnerable households and businesses.

He said NECA would continue to advocate tax simplification, a predictable business environment and sustainable business practices through its environmental, social and governance initiatives.

On the future of work, Oyerinde said Nigeria must prepare its workforce for technological changes by investing in skills development and emerging technologies.

He said NECA supports workforce development through its ICT Academies in Lagos and Abuja, as well as the Af Xcelerate initiative, which equips Nigerians with skills in artificial intelligence, data analytics, cybersecurity, and other emerging technologies.

He said the country’s ability to balance digitalisation, fair wages, productivity, economic reforms and enterprise sustainability would shape its employment prospects.

Ahead of the 2027 general elections, Oyerinde urged political and economic stakeholders to prioritise employment creation, enterprise development, workers’ welfare, social protection and economic stability over partisan interests.

He also tasked the media with promoting accurate, balanced and informed reporting to strengthen accountability and constructive social dialogue.

Oyerinde urged conference participants to develop practical recommendations that balance workers’ welfare with productivity, enterprise sustainability, and job creation.

He said Nigeria’s future of work must be inclusive, technology-driven and anchored in decent work, social justice and competitive enterprises. (Guardian)