Payment of N70, 000 can only be realistic if FG plays its part- OPS

By allcitynews.ng

That N70,000 has been approved as New National Minimum Wage may no longer be fresh news to most stakeholders across the country.

Although Organised Private Sector (OPS) has accepted the New National Minimum Wage of N70,000 approved by President Bola Ahmed Tinubu on Thursday 18 July 2024, may also no longer be news.

And the news is that upward review of New National Minimum Wage will now be every three years rather than five years.

Another fresh news on this is that, payment of the N70, 000 by the Organized Private Sector will only be accepted and also could be sustained if Federal Government plays its part.

The leadership of the OPSN comprising the Nigeria Employers’ Consultative Association (NECA); Manufacturers’ Association of Nigeria (MAN); National Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA); Nigeria Association of Small and Medium Enterprises (NASME) and Nigerian Association of Small Scale Industrialists (NASSI) has reiterated their call on Federal Government to play its part for the payment to be actualized.

On his part, the Director General of.Nigeria Employers’ Consultative Association (NECA), Mr. Adewale-Smatt Oyerinde came out with lists of demands that should be met for the payment to work.

Oyerinde commended the President and Commander-in-Chief of the Federal Republic of Nigeria, Senator Ahmed Bola Tinubu, GCFR for putting to rest the protracted issue of the National Minimum Wage.

Speaking in Lagos, the Director-General, Nigeria Employers’ Consultative Association (NECA), Mr. Adewale-Smatt Oyerinde stated that “while we commend the President for putting to rest the immediate issue of the National Minimum Wage, we also note, most importantly his commitment to support the sub-nationals and the Organized Private Sector to pay the new wage”

While affirming that consultation is still on-going within the Organized Private Sector, Oyerinde noted that “during the consultations at the National Minimum Wage Committee, the Organized Private Sector strongly expressed concern about its ability to pay the N62,000 recommended by the Tripartite Committee.

In fact, the N62,000 was premised on the understanding and agreement by the Government representatives that the Government will take definite steps to reduce the current economic burden on the organized private sector.

The supports requested included the reversal of increase in electricity tariffs, CBN redemptions of all outstanding forwards for companies in the productive sector, a freeze on introduction of new taxes and levies on businesses for the next five years, duty exemption on imported conversion kits and government subsidy on procurement of same, fixed rate of N800 for the assessment of import duty on all production inputs, revisit of the recent Financial Reporting Council regulation to curtail its application to private businesses, enforcement of the Executive Order 003 and 005 on Patronage of Made in Nigeria Product by Ministries, Departments and Agencies of Government and the National Assembly and the discontinuation of the Price Verification Portal, as it is inimical to the smooth operation of businesses and the basis for setting it up no longer exist, among others”.

Furthermore, Oyerinde stated that “while we commend the President for the approval, it should be noted that the ability to pay remains a fundamental consideration. The proposed support by the President to organized businesses should be immediately announced to enable businesses plan effectively. The private sector will continue to partner with Organized Labour to ensure compliance and inclusive economic development, while we look forward to the support promised by Government”

According to Ajayi-Kadir, “It has just been announced that President Bola Tinubu approved a new minimum wage of N70,000 for Nigerian workers and pledged to review the national minimum wage law every three years. The President also promised to find ways to assist the private sector and the sub-nationals to pay the minimum wage.”

As you are aware, the final outcome of the tripartite committee comprising, the government, labour and the private sector, was a stalemate at N62,000 offered by the federal government and the private sector on the one hand, and N250,000 by labour on the other.

This positive development is the outcome of further negotiations between government and labour, with the intervention of Mr. President. So one should consider that we have gotten to the end of the long drawn negotiations and that going forward, we shall have accelerated conclusion of the issue of minimum wage. We commend Mr. President for achieving this breakthrough and look forward to the promised assistance.

On the side of the private sector, we should hold on to the promise of Mr. President that the federal government will find a way to assist us to pay the minimum wage agreed with Labour. In this regards, I would assume that reference would be made to the demands made by the Organised Private Sector at the concluding stage of the tripartite negotiations.

We had intimated the committee with the challenges confronting businesses in the private sector and that there was the need to ameliorate those challenges in order to improve the capacity of our members to pay the minimum wage that we offered. We maintained that those binding constraints may  constitute impediments to the full compliance of our member when the minimum wage is signed into law.

So, the assumption is that Mr. President will give expedited consideration to those challenges and take necessary steps to address them. This will go a long way in onboarding the private sector in the new agreement on the minimum wage.

To this end, we presented a list of demands including the following:

1) SMEs and MSMEs should be exempted from compliance in view of their incapacity and prevailing operational challenges.

2) CBN redemptions of all validly transacted outstanding forex forwards for companies in the productive sector.

3) The reversal of increase in electricity tariffs OR only 100% increase in electricity tariff for minimum of 20 hours of supply.

4) Duty exemption on imported conversion kits and government subsidy on procurement of same.

5) A freeze on introduction of new taxes on businesses for the next five years

6) Fixed rate of N800 for the assessment of import duty on all production inputs.

7) Revisit of the recent Financial Reporting Council regulation to curtail its application to private businesses.

8) Discontinuation of the Price Verification Portal as it is inimical to the smooth operation of businesses and the basis for setting it up no longer exist. This has been implemented by the CBN.

“We are optimistic that the positive atmosphere created by the recent agreement between government and Labour would facilitate speedy consideration and acceptance of  aforementioned.”