…Warn of Possible Collapse
By Victor Ahiuma-Young
LAGOS — Employers in the organised private sector have urged the Federal Government to urgently address rising transport costs, food inflation and housing pressures ahead of the next national minimum wage negotiations, warning that the talks may fail if underlying economic challenges are not resolved.
The Nigeria Labour Congress (NLC) and the Trade Union Congress of Nigeria (TUC) had earlier announced during the May Day celebrations that negotiations for a new minimum wage would commence in July.
Speaking with Vanguard, the Director-General of the Nigeria Employers’ Consultative Association (NECA), Mr. Adewale-Smatt Oyerinde, said early engagement and decisive policy action are necessary to ensure the wage talks reflect real economic conditions rather than nominal figures.
Oyerinde stressed that minimum wage negotiations must not begin in an atmosphere of uncertainty, but should be preceded by deliberate interventions targeting key cost drivers affecting workers, especially transportation, food security and housing.
He called for structured collaboration among government, labour and the private sector ahead of formal negotiations to avoid prolonged disputes and implementation challenges.
“For now, we commend the NLC for raising the issue. Before now, we have advocated for a proactive, quasi-formal engagement—perhaps an informal conversation that government should begin leading,” he said.
He noted that policy discussions should begin early, referencing International Labour Organisation (ILO) guidelines on wage-setting, which he said had already been shared with relevant government agencies to guide preparatory steps.
Oyerinde argued that addressing transportation challenges should be a priority, warning that unresolved issues could become major obstacles during wage negotiations.
He also identified food security and housing as critical pressure points, stressing that wage increases would quickly lose value if inflation in these sectors remains unchecked.
According to him, government should consider structured systems to stabilise food prices, including stronger links between farmers and off-takers, as well as reforms to improve housing affordability through institutions such as the Federal Mortgage Bank of Nigeria.
“These are issues that must be addressed now, not later,” he said, adding that early policy action would reduce tensions and delays during formal tripartite negotiations.
He further urged government to begin incorporating these structural concerns into upcoming budget planning cycles, noting that preparation for the 2028 fiscal framework will commence by December 2027.
Oyerinde maintained that although the three-year wage negotiation cycle may appear long, economic realities require immediate planning and coordinated action.
He added that the private sector remains open to engagement and has continued to support workers through wage adjustments where necessary, while calling for sustained dialogue among all stakeholders ahead of the negotiations.
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