The employers’ association says the National Minimum Wage is a statutory pay floor, not an automatic salary increase for all workers.
The Nigeria Employers’ Consultative Association (NECA) has called on the Federal Government and Organised Labour to ensure that negotiations on the National Minimum Wage (NMW) follow a tripartite process involving government, employers and workers.
In a statement, NECA, which represents organised businesses in Nigeria, acknowledged the ongoing discussions between the Federal Government and Organised Labour, recognising concerns over workers’ welfare, the rising cost of living and declining purchasing power.
However, the association stressed that employers must be fully involved in determining the minimum wage, describing tripartism as a fundamental principle of industrial relations and social dialogue.
NECA referenced relevant International Labour Organisation (ILO) instruments, including Convention No. 131 and Recommendation No. 135 on minimum wage fixing, as well as Convention No. 26 on minimum wage-fixing machinery. It also cited ILO Convention No. 144 and Recommendation No. 113 in support of consultation and cooperation among social partners.
According to the association, although the government and labour unions may hold bilateral discussions, such engagements should not replace the legally established tripartite process. It maintained that organised private-sector employers cannot be considered parties to agreements reached without their participation and consent, while emphasising that employers remain obligated to comply with any minimum wage validly established under the National Minimum Wage Act.
The association clarified that it does not oppose negotiations or a review of the National Minimum Wage. Instead, it called for a transparent, inclusive and evidence-based process that considers both workers’ welfare and the financial capacity of businesses.
NECA noted that Article 3 of ILO Convention No. 131 requires minimum wage decisions to account for workers’ needs alongside relevant economic factors. These include the cost of living, productivity, employers’ ability to pay, business sustainability, employment generation and retention, and prevailing economic conditions.
It added that these considerations are particularly important as Nigerian businesses continue to contend with high energy costs, inflation, expensive financing and other operational difficulties.
The association also stressed the need to distinguish the National Minimum Wage from general salary increases. It explained that the minimum wage establishes the statutory floor for remuneration payable to workers covered by the law and should not automatically translate into salary increases across all employee categories.
NECA said consequential adjustments, wage relativity and general salary reviews are separate matters that should be handled through collective bargaining, contractual arrangements and negotiations at enterprise level.
The employers’ body further expressed concern over threats of industrial action linked to the ongoing wage discussions, warning that disruptions to business activities could undermine employment security, investor confidence and economic recovery.
It said such disruptions could be particularly damaging to small and medium-sized enterprises (SMEs/MSMEs), which are still working to overcome significant economic pressures.
NECA consequently urged the parties to embrace constructive dialogue, mutual respect and established legal mechanisms for resolving disputes in order to maintain industrial harmony.
Looking ahead to the formal commencement of National Minimum Wage negotiations, the association called on the Federal Government and all relevant social partners to uphold tripartism and comply with the principles established under applicable ILO conventions and recommendations.
It maintained that a sustainable agreement must balance workers’ needs with productivity, business viability, employment considerations and Nigeria’s prevailing economic realities.
NECA reiterated its commitment to decent work, fair remuneration, sustainable enterprises and productive employment, stressing that protecting workers’ welfare and ensuring business survival should be pursued together in the interest of national development.
