NECA Warns Against Unrealistic Wage Hikes, Insists on Tripartite Negotiations

The Nigeria Employers’ Consultative Association (NECA) has warned that unrealistic increases in the national minimum wage could threaten business sustainability, weaken compliance and undermine job creation, insisting that wage negotiations must involve the Federal Government, employers and organised labour.

The employers’ body said bilateral agreements between the government and labour unions could not replace the statutory tripartite negotiation process required for determining the national minimum wage.

NECA’s position comes amid renewed disagreements between organised labour and the Federal Government over workers’ welfare, rising living costs and a proposed monthly transport allowance of ₦70,000 for civil servants.

In a statement issued on Thursday and signed by its Director-General, Adewale-Smatt Oyerinde, the association acknowledged workers’ concerns over declining purchasing power but stressed that wage determination must consider both employees’ welfare and employers’ capacity to pay.

It maintained that any wage review should be guided by prevailing economic conditions, the cost of living, productivity, employment generation and the financial sustainability of businesses.

According to NECA, the principle of tripartism is embedded in International Labour Organisation (ILO) Convention No. 131 on minimum wage fixing and Convention No. 26 on minimum wage-fixing machinery.

“While NECA respects the right of government and organised labour to hold bilateral discussions, such engagements cannot substitute for the statutory tripartite process,” the association stated.

It argued that private-sector employers could not be considered parties to, or contractually bound by, agreements reached without their participation and concurrence.

However, NECA clarified that its position did not absolve employers of their obligation to comply with any national minimum wage validly established under the National Minimum Wage Act.

Speaking at the 2026 labour conference of the Labour Correspondents’ Association of Nigeria, Oyerinde said the existing ₦70,000 minimum wage emerged from negotiations in which the organised private sector participated through the Organised Private Sector of Nigeria.

Represented by Idorenyin Brooks, a member of NECA’s Abuja Geopolitical Group, the director-general called for a transparent and credible framework that balances workers’ living costs with businesses’ ability to sustain employment.

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

Meanwhile, the President of the Nigeria Labour Congress (NLC), Joe Ajaero, has questioned the Trade Union Congress’ opposition to the Federal Government’s proposed ₦70,000 monthly transport allowance for workers.

Speaking on Channels Television’s Morning Brief, Ajaero said the NLC had negotiated independently of the TUC and expressed surprise that the latter was challenging an arrangement it had not negotiated or signed.

He argued that the TUC could have sought a higher allowance instead of rejecting the proposal, adding that both unions could have pursued a common position through further negotiations.

Ajaero also cautioned against assuming that a substantial increase in the minimum wage would automatically resolve workers’ economic difficulties, arguing that the rising cost of goods and services remained a major concern.

The NLC president maintained that improving workers’ welfare required measures to strengthen purchasing power and reduce the burden of high transportation, food and other essential costs.

The differing positions highlight the continuing debate over how best to protect workers from the effects of economic reforms while ensuring that wage policies remain sustainable for employers.

With the 2027 general elections approaching, the dispute over wages and workers’ welfare is expected to remain a major issue in discussions about economic policy and the cost of living.