Members of Nigeria’s organised private sector have cautioned against expecting businesses to automatically adopt a N100,000 minimum wage, warning that many small and medium-sized enterprises are already under pressure from rising operating costs and shrinking profit margins. They noted that while some large corporations may be able to absorb higher wage bills, most SMEs face significant financial constraints.
The concerns come amid renewed debate over a possible review of the national minimum wage and decisions by some state governments to increase workers’ pay to N100,000. Business groups argued that wage policies should take into account the realities facing private enterprises, particularly in sectors struggling with inflation, high energy costs and weak consumer demand. President of the Lagos Chamber of Commerce and Industry, Leye Kupoluyi, said employers should not be compelled to match government wage levels if doing so threatens business sustainability. He urged the government to address structural challenges such as infrastructure deficits, fuel supply issues and the high cost of doing business to create an environment where companies can support higher wages.
