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  • NECA: No excuse for governors to delay payment of N70,000 minimum wage

    NECA: No excuse for governors to delay payment of N70,000 minimum wage

    The Nigeria Employers’ Consultative Association (NECA) has declared that state governments have no justifiable reason to withhold payment of the new N70,000 minimum wage.

    NECA, which represents private sector employers, asserted that the Federal Government has provided sufficient support for states to implement the wage increase. 

    This position was expressed by NECA’s Director-General, Adewale Smatt-Oyerinde, during his appearance on The Morning Show on Arise Television on Tuesday.

    Following the signing of the minimum wage bill into law by President Bola Tinubu in July 2024, state governments pledged to implement the increase from N30,000 to N70,000. 

    Addressing concerns about affordability, Smatt-Oyerinde dismissed claims that some states might lack the resources to pay, emphasizing that the new minimum wage is now a permanent fixture.

    Oyerinde maintained that if state governors do not comply with the new minimum wage, the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) will need to adjust their approach to ensure payment.

    Read Also: Proposed tax reform will bring relief, says NECA

    He said: “We have moved away from the context of hope, the reality now is what we should face. The reality for all stakeholders whether at the federal, state or local government is that N70,000 has come to stay and everybody should align with the law, except those that are exempted.

    “The issue of having funds to pay the N70,000 also does not arise because it is no longer hidden that the Federal Government has been consistently supporting the state governments.”

    He added: “The allocations to state governments have increased proportionately. So, with a little fiscal discipline, no state should complain that they can’t pay N70,000 as approved by the president.”

  • NECA seeks collaboration with Fed Govt

    NECA seeks collaboration with Fed Govt

    Collaboration with the Nigeria Employers Consultative Association (NECA) has been identified as a key instrument to driving the reforms being introduced by the President Bola Tinubu-led administration.

    This is because the Organised Private Sector is a major stakeholder and a driving force of the growth of the economy.

    Director-General of NECA, Mr Adewale-Smatt Oyerinde, said this at the third Nigeria Employers Summit in Abuja.

    Oyerinde said Tinubu’s administration, within one year in office, has introduced various reforms that would shape the growth trajectory of the country.

    He said the reforms affects everybody, adding that it has affected the private sector, Nigerians and households.

    “One of the aims of the summit among many others is not just to interrogate the reforms but to find a way where we can create a deeper nexus between those reforms. It is also to create an environment where the private sector can play a major role in facilitating the achievement of the objectives of those reforms as all reforms have their own objectives,” he said.

    Oyerinde said the Federal Government needs credible organisations such as NECA to help drive the reforms to a logical conclusion.

    “It is also to let the government know that much can be achieved when we deepen the collaboration with the private sector and government towards the fulfillment of the eight-point agenda of this administration because without the private sector involvement in those reforms, much cannot be achieved,” he added.

    On the sidelines of the summit, NECA called for a comprehensive embrace of the green economy for growth and sustainability.

    In a message entitled: ‘Green Economy in Today’s Business World,’ NECA outlined basic information on why the green economy should be pursued by the government in collaboration with stakeholders.

    The message read: “A green economy fosters sustainable development by minimising environmental impact and conserving natural resources while driving economic growth and social inclusion.

    “Transitioning to a green economy is essential for businesses to thrive sustainably, meet market demands and contribute to a resilient future.”

    Read Also: 2,000 Lagos retirees get N4.5b accrued benefits

    It added that a green economy will mitigate climate change, preserve biodiversity, stimulate innovation, create jobs and equally enhance resilience. It says that it will also balance growth, conservation, and social equity.

    The employers also canvassed that embracing green practices not only benefits the environment but also delivers tangible economic, social and health advantages and also paves the way for a more sustainable and prosperous future.

    NECA also called for practical steps towards the implementation of a green economy. It listed adoption of sustainable practices as the first step.

    His words: “Implement energy-efficient technologies to reduce energy consumption and costs. Reduce waste like paperless operations, reusable packaging and proper waste segregation. Promote and encourage recycling programmes for materials like paper, plastic, glass and electronics to minimise landfill waste.

    “Define clear objectives by establishing measurable goals; progress tracking and continuation of improvement.

    “Internal engagement should revolve around education and empowerment of employees about green practices, encourage participation in sustainability initiatives and recognise achievements. External collaboration with suppliers, consumers and partners to promote sustainability and foster a culture of shared responsibility.”

  • NECA seeks collaboration with private sector

    NECA seeks collaboration with private sector

    President of the Nigeria Employers’ Consultative Association (NECA), Taiwo Adeniyi has called for effective collaboration between the public and private sector to revive the economy.

    Adeniyi spoke at the third NECA summit in Abuja on Tuesday with the theme: Economic Renaissance: Harnessing government reforms and private sector agility.”

    He said that while the association recognised the critical role of the ongoing reforms by the President Bola Tinubu-led administration in attracting investment, enhancing productivity, and driving sustainable economic growth, it was essential to note that the true measure of these reforms laid in their effective implementation and the tangible benefits they deliver to businesses and citizens alike

    Adeniyi said: “The private sector, with its inherent dynamism and innovation, stands as a cornerstone of economic development. Our agility allows us to swiftly respond to market changes, adopt new technologies, and create value. It is this spirit of innovation and resilience that we must harness to complement government reforms.

    “By promoting a symbiotic relationship between the public sector’s regulatory framework and the private sector’s dynamism and value creation, our country can achieve sustainable and inclusive economic growth.”

    He explained that the theme for this year’s summit aims to deepen collaboration and create pathways towards maximizing ongoing government reforms by leveraging the capacity and potential of private sector employers.

    “We believe this will expedite the achievement of the 8-point “Renewed Hope” agenda of Mr. President towards promoting predictable national development, and fostering inclusive growth,” he said

    Speaking further, he said: “Since the beginning of this administration, the government has embarked on an ambitious agenda of reforms aimed at revitalising our economy. These reforms span various sectors, including agriculture, manufacturing, energy, and digital technology.

    “It also includes significant measures such as the removal of fuel subsidy, the Forex Unification policy, and ongoing omnibus monetary and fiscal reforms led by the Presidential Fiscal Policy and Tax Reform Committee under Mr. Taiwo Oyedele.

    “While we commend these efforts and recognise their critical role in attracting investment, enhancing productivity, and driving sustainable economic growth, it is essential to note that the true measure of these reforms lies in their effective implementation and the tangible benefits they deliver to businesses and citizens alike.”

    “We, therefore, call for the government’s commitment towards implementing the action points that will emerge from this summit’s discussions.

    “We do not want this to be a mere talk shop, but a summit that fosters an improved socio-economic environment allowing businesses, irrespective of size and sector, to thrive.”

    The Special Adviser to the President on Presidential Enabling Business Environment Council (PEBEC) and Investment, Jumoke Oduwole said the organisation was committed to eliminating hurdles that hinder seamless policy adoption by fostering a business-friendly environment.

    She said: “One of the greatest challenges we face is ensuring that economic policies are not only well-crafted but also well-received and effectively implemented. Businesses often encounter hurdles that hinder seamless policy adoption, which can stymie growth and innovation.

    Read Also: Tinubu expresses support for drug war, urges Nigerians to support initiative

    “At PEBEC, we are committed to eliminating such barriers by fostering a business-friendly environment. We believe that through open dialogue and collaboration with NECA, and other stakeholders, we can streamline policy implementation, reduce resistance and pave the way for more effective reforms.

    “Creating jobs is at the heart of our development agenda. The private sector is the primary engine for job creation, and its agility and responsiveness are crucial. We must continue to support and incentivize businesses to expand and innovate, thereby creating more employment opportunities.

    “On the part of the government, the Presidential Enabling Business Environment Council (PEBEC) oversees Nigeria’s business environment intervention, and remains committed to remove bureaucratic and legislative constraints to doing business and to improve the perception about the ease of doing business in Nigeria. The Council’s mandate is directly tasked with enabling President Bola Ahmed Tinubu’s 8 point agenda.

    “As enablers, we are dedicated to creating a conducive environment for businesses to start, grow and succeed in the fulfilment of our mandate and improvement of the country’s economy.”

    Speaker of the House of Representatives, Tajudeen Abbas said addressing insecurity and piracy would boost investors confidence and in turn drive economic growth.

    Abbas, who was represented by the member representing Anambra East/Anambra West Federal Constituency, Peter Aniekwe, said the House was committed to enacting legislation that will attract foreign direct investments among others.

  • NECA seeks collaboration with private sector to revive ailing economy

    NECA seeks collaboration with private sector to revive ailing economy

    President of the Nigeria Employers’ Consultative Association (NECA), Taiwo Adeniyi has called for effective collaboration between the public and private sector to revive the economy.

    Adeniyi spoke at the third NECA summit in Abuja on Tuesday, June 25, with the theme: Economic Renaissance: Harnessing Government Reforms and Private Sector Agility.”

    He said that while the association recognised the critical role of the ongoing reforms by the President Bola Tinubu-led administration in attracting investment, enhancing productivity, and driving sustainable economic growth, it was essential to note that the true measure of these reforms laid in their effective implementation and the tangible benefits they deliver to businesses and citizens alike

    Adeniyi said: “The private sector, with its inherent dynamism and innovation, stands as a cornerstone of economic development. Our agility allows us to swiftly respond to market changes, adopt new technologies, and create value. It is this spirit of innovation and resilience that we must harness to complement government reforms.

    “By promoting a symbiotic relationship between the public sector’s regulatory framework and the private sector’s dynamism and value creation, our country can achieve sustainable and inclusive economic growth.”

    He explained that the theme for this year’s summit aims to deepen collaboration and create pathways towards maximizing ongoing government reforms by leveraging the capacity and potential of private sector employers.

    “We believe this will expedite the achievement of the 8-point “Renewed Hope” agenda of Mr. President towards promoting predictable national development and fostering inclusive growth,” he said

    Speaking further, he said: “Since the beginning of this administration, the government has embarked on an ambitious agenda of reforms aimed at revitalising our economy. These reforms span various sectors, including agriculture, manufacturing, energy, and digital technology.

    “It also includes significant measures such as the removal of fuel subsidy, the Forex Unification policy, and ongoing omnibus monetary and fiscal reforms led by the Presidential Fiscal Policy and Tax Reform Committee under Mr. Taiwo Oyedele.

    “While we commend these efforts and recognise their critical role in attracting investment, enhancing productivity, and driving sustainable economic growth, it is essential to note that the true measure of these reforms lies in their effective implementation and the tangible benefits they deliver to businesses and citizens alike.”

    “We, therefore, call for the government’s commitment towards implementing the action points that will emerge from this summit’s discussions.

    “We do not want this to be a mere talk shop, but a summit that fosters an improved socio-economic environment allowing businesses, irrespective of size and sector, to thrive.”

    Read Also: NECA urges organised labour to prioritise job security

    The special adviser to the president of the Presidential Enabling Business Environment Council (PEBEC) and Investment, Jumoke Oduwole, said the organisation was committed to eliminating hurdles that hinder seamless policy adoption by fostering a business-friendly environment.

    She said: “One of the greatest challenges we face is ensuring that economic policies are not only well-crafted but also well-received and effectively implemented. Businesses often encounter hurdles that hinder seamless policy adoption, which can stymie growth and innovation.

    “At PEBEC, we are committed to eliminating such barriers by fostering a business-friendly environment. We believe that through open dialogue and collaboration with NECA, and other stakeholders, we can streamline policy implementation, reduce resistance and pave the way for more effective reforms.

    “Creating jobs is at the heart of our development agenda. The private sector is the primary engine for job creation, and its agility and responsiveness are crucial. We must continue to support and incentivize businesses to expand and innovate, thereby creating more employment opportunities.

    “On the part of the government, the Presidential Enabling Business Environment Council (PEBEC) oversees Nigeria’s business environment intervention and remains committed to removing bureaucratic and legislative constraints to doing business and to improve the perception about the ease of doing business in Nigeria. The Council’s mandate is directly tasked with enabling President Bola Ahmed Tinubu’s 8-point agenda.

    “As enablers, we are dedicated to creating a conducive environment for businesses to start, grow and succeed in the fulfillment of our mandate and improvement of the country’s economy.”

    Speaker of the House of Representatives, Tajudeen Abbas, said addressing insecurity and piracy would boost investors’ confidence and in turn drive economic growth.

    Abbas, who was represented by the member representing Anambra East/Anambra West Federal Constituency, Peter Aniekwe, said the House was committed to enacting legislation that will attract foreign direct investments among others.

  • NECA urges organised labour to prioritise job security

    NECA urges organised labour to prioritise job security

    The Nigeria Employers’ Consultative Association (NECA) has urged the Organised Labour to prioritise job security in the ongoing negotiation for a new national minimum wage.

    NECA advised Organised Labour to agree with a figure that is realistic and sustainable, adding that in the last three years, hundreds of companies have exited the country, shut down or changed business models.

    Addressing reporters during the NECA Forum with Labour Writers Association of Nigeria (LAWAN), the Director-General of NECA, Mr Adewale Smart Oyerinde, said Organised Labour should refocus its effort on protecting jobs, boosting the capacity of the private sector to create more jobs and ensure sustainability and ability to pay.

    He also urged labour to consider the Small Medium Enterprises (SMEs), which, according to him, is the highest job provider.

    Organised labour represented by the Nigeria Labour Congress (NLC) and Trade Union Congress (TUC) insisted on the payment of a national minimum wage of N250,000, while the Federal Government  offered N62,000.

    Oyerinde explained that if the employers must pay the proposed N62,000 minimum wage, then workers must be willing to discuss productivity.

    “Everything basically rests on the economy. Can the economy carry it? Can organised businesses as it constitutes, carry it? Those are parameters that we can’t run away from.

    “Now, the reality for us is this, as an organised private sector. I would not want to delve into the realities of government. I would not want to delve into the N250, 000 realities of organised labour.

    Read Also: Minimum wage: NECA warns labour, governors

    “Ability to pay is a fundamental part of that issue that we have to take into consideration. Enterprise sustainability is also a fundamental part of those parameters that we have to take into consideration. The state of the economy is also a fundamental part of that parameter. And then the needs of workers is also a fundamental part of that conversation,” he explained.

    He stressed on the need to allow the rule of law to prevail on the issue of National Minimum wage as stipulated in the ILO Convention 131.

    He said what was submitted by the tripartite committee was an alignment of interest and not an agreement.

    Oyerinde stated that the matter has now left the hands of the tripartite committee, explaining that everyone is awaiting the decision of President Bola Tinubu.

    He mentioned that the demand by organised labour at this period has the potential to cripple small and medium enterprises and push many other businesses into comatose.

    The NECA DG stated: “It is important to strike a balance between workers’ needs, the  economic situation, ability to pay and productivity. ‘‘

    The NECA boss stated that It was no secret that organised businesses were faced with multidimensional challenges ranging from multiple taxes, levies and fees, recent astronomical power costs, rising interest rates and exchange rates, among many others.

    “We urge the government to fast-track the implementation of its interventions to make life more bearable for workers, businesses, and Nigerians.

    “Any disruption of organised businesses’ activities could have serious consequences on job security and the sustainability of businesses.

    “Businesses need to be alive and stay sustainable for jobs to be created and for the government to generate taxes, he added.

  • NECA: brain drain distorting production

    NECA: brain drain distorting production

    As more Nigerians continue to seek greener pastures abroad, the Nigeria Employers’ Consultative Association (NECA) has said the challenges of the best hands leaving the country to work overseas are creating a lot of distortion in the production chain of organisations.

    Director-General of NECA, Adewale-Smatt Oyerinde, who spoke with reporters, said once the best hands leave, the challenges to start recruitment, was also giving most organisations a lot of headaches.

    He said this was creating problems for organised businesses because of the investment in equipping them and the recruitment.

    Read Also: FULL LIST: Jail term, fine, other consequences for mutilation, abuse of naira notes

     Noting that globally, there is a concept of mobility of leaving, stating that as people were leaving, a lot of foreigners were also coming to Nigeria for employment.

     However, he said the challenge is when the country’s best brains are leaving, it creates problems for the nation because they are leaving to help develop the economies of the developed nation, which perpetually is keeping the country disadvantaged.

     “So, why are those people leaving, the issue of unemployment continues to increase and that is because the businesses that are already on the ground, the environment itself is also squeezing them. It is squeezing them in such a way that even their capacity to produce is not maximised. 

      “So, if a business is operating at 50 per cent capacity utilisation, some people are not in a position to employ other individuals because they cannot just produce at maximum. If you look at those issues, they are situated in the regulatory environment, the legislative environment and the fiscal and monetary policies that have not favoured the organised private sector for many years,” he said.

  • Expatriate Employment levy needless, says NECA

    Expatriate Employment levy needless, says NECA

    The New Expatriate Employment Levy (EEL) imposed on expatriates employed by the Federal Government is creating disaffection between the Organised Private Sector(OPS), and the government.

    Besides, there are fears that the levy will create bottlenecks for  prospective foreign investors.

    Already, the Nigerian Employment Consultative Association (NECA) has expressed its aversion to the levy.

    In a letter to the Federal Government on the issue, the association called for either the withdrawal or suspension of the levy.

    In the letter, the Director-General/Chief Executive of NECA, Adewale-Smatt Oyerinde, maintained that Nigeria is not conducive to policies such as the Expatriate Employment Levy, notwithstanding its good intention. The association maintained that the fundamentals of the EEL are that a tax could be levied only if a statute so provides.

    Read Also: NECA and expatriate levy

    It added: “In Nigeria, just as it is the case in most countries, there is a basic constitutional principle that any act of taxation must have a legal basis.

    “This principle means that no tax can be levied except under authority of a law.

    “This principle is found in Section 59 of the 1999 Constitution of the Federal Republic of Nigeria and in a plethora of case laws such as the Ahmadu v. Governor of Kogi State (2002) 3 NWLR (Pt. 755), 502, at 522, (CA).”

    According to the association, there is no need for the levy.

    It added that: “The Expatriate Employment Levy is a duplication of policies already in existence and will create further encumbrance to the ease of doing business efforts of the Federal Government and create bottlenecks for intending foreign investors.”  

  • We’ll consider economic factors before fixing new minimum wage, says NECA

    We’ll consider economic factors before fixing new minimum wage, says NECA

    The Nigeria Employers’ Consultative Association (NECA) has said every parameter will be considered before the committee will agree on a new minimum wage.

    The parameters  include inflation, exchange rate, cost of doing business, and the ability to pay.

    Speaking with The Nation, the Director-General of NECA, Mr Adewale-Smart Oyerinde, who is also a member of the committee on new minimum wage, said they would discuss with employers  with passion, open mind, good faith and will.

    He said there is a standard parameter for setting up a minimum wage by the International Labour Organisation(ILO) and this would be adopted in their deliberation.

    Oyerinde said the two key parameters are the need of workers and their families, and the economic context.

    “We know that the expectation is very high for both the workers and the employers. For us, we are going into deliberation with an open mind and expecting candid conversations.

    “And before we arrive at a meaningful minimum wage, we will sit down, look at those parameters and the realities on the ground within the context of the inflation rate, interest rate, ability to pay and the economy as a whole. Bringing those parameters together, hopefully, we can arrive at a workable, realistic and positive minimum wage for  workers in 2024,” Oyerinde said.

    Read Also: Tinubu to University unions: prioritise dialogue to avoid frequent strikes

    On the proposed N200,000 minimum wage by the Trade Union Congress (TUC), Oyerinde said: “ It is okay for a party to have s certain figure in mind, either N200,000 or N150,000. But it all depends on the parameters on ground. For instance, there are still conversations and research going on within our group and we will soon arrive at conclusion.’’

    On the living wage, he said: “There is no global framework for setting a living wage as of this moment. Even at the ILO level, the conversation on a living wage is still on. It is a concept that is acceptable to employers, and the global community, but there is no global framework on which the conversation can be hung. That framework is still being discussed.

    ‘‘However, for minimum wage, it is an agreed framework. Convention 131 sets that pattern for us all to follow; hopefully, we will activate it this year to arrive at a reasonable minimum wage for everyone.”

  • NECA: regulators stifling OPS growth

    The Nigeria Employers’ Consultative Association (NECA) has accused regulatory bodies of constituting a clog in the wheel of progress of the Organised Private Sector (OPS).

    The association, during a visit to  Vice President Yemi Osinbajo, at the Presidential Villa, Abuja,  lamented that the regulators were working at cross purposes.

    The association warned that except the vision behind the Ease of Doing Business was allowed to work, they might be forced to go to court to seek redress, because of the non-accessibility of some of the chief executives of some regulatory bodies, who put spanners in the work.

    NECA Director-General Timothy Olawale said the meeting focused on NECA’s concerns on issues of competitiveness of business and sustainability in Nigeria.

    “There are several of them, but key among them, are the issue of regulatory bodies that are working at cross purpose.

    “The Ease of doing Business that is being championed by the Office of the Vice President and Presidential Enabling Business Environment Council (PEBEC). What we are saying is that we may not have access to Office of the Vice President every now and then to escalate issues for his attention.

    “While also we do not want to be running to the court to seek relief because of the issue of non-accessibility of some of the chief executives of some regulatory bodies, we want a situation where there is a clearing desk in the Office of the Vice President, where we can escalate these issues and they can be resolved amicably, in the interest of national development and national economy.

    “As a matter of fact, many businesses have been made, but what we are saying is that it is not all regulatory bodies of government that are on the same page with government on the desirables,’’ he said.

    He added that there were instances where some of the regulatory bodies shut businesses without recourse to dialogue and instances where there were infractions or interventions from the agencies of government outside their enabling Act.

    Olawale maintained that the rule of law must be respected.

    “Even when you have cases in court and there are restraining orders, we have instances where some of the regulatory bodies go against such orders and still go ahead to disrupt businesses.

    “The Vice President has said it is something that is doable. The setting up of a clearing desk where these issues can be escalated because he is very desirous of working closely with the private sector and all these issues are issues that can be taken on board,” Olawale said.

    On minimum wage, he urged the government and labour unions to adopt the principle of give and take as it was very important. He said there was need to arrive at a win-win situation.

    He warned that if the negotiation dragged on for too long, it may lead to workers going on strike, an action which he warned that the economy cannot afford.

    He said: “The economy cannot afford another round of strike. Right now, the economy is fragile, even oils is having problem and anything that will destabilise the economy will take us back to recession.”

  • NECA against forex restriction on milk import

    The Nigeria Employers’ Consultative Association (NECA) has warned that restriction of foreign exchange (forex) access by the the Central Bank of Nigeria (CBN) to milk importers is capable of crippling businesses.

    It, therefore, urged the apex bank to revisit the policy direction and create an environment for further engagement.

    Its  Director-General, Mr. Timothy Olawale said the proposed restriction of forex is too sudden and has the potential of crippling businesses which are already struggling.

    He said: “While we understand and acknowledge the imperative for backward integration on the long term, the proposed restriction of forex is too sudden and have the potential of crippling businesses, which are already struggling. Without prejudice to the long term benefits of backward integration, the short-term consequences, without a deliberate and acceptable plan by critical stakeholders could be catastrophic for local businesses in the value-chain.”

    Speaking further on the need for a long term backward integration plan, the NECA chief said cow husbandry has been proved not to be ideal for milk production, but for beef consumption only. He said contrary to the postulation that local cows are good enough for milk production, massive investment would have to be made for the importation of dairy cows for milk production.

    Olawale averred that due to the gap that would be created between local supply and demand, unscrupulous elements would have field day importing milk with attendant loss of revenue to government, massive loss of jobs with attendant social consequences.

    ”Other consequences include capacity under-utilisation as the entire food and beverage sector will be adversely affected as many are dependent, in varying degrees, on the use of milk as intermediate product,” he said.

    He urged the CBN to soften its hardline stance and listen to stakeholders’ concerns.

    He said: “The CBN should, in the interim, suspend the planned restriction and after extensive consultation with all stakeholders revisit the timeline of the implementation of the policy to enable companies plan for alternatives.

    “Local production of the product at the scale required to meet domestic needs would take between four to five years. Government should support key players in the sector to enable them invest massively in backward integration.”

    He said continuous and expanded consultation and engagement with stakeholders should be common feature of the CBN policy thrust.