Nigeria TV Info 

Private Sector Faults ₦100,000 Minimum Wage Proposal

Lagos, Nigeria — Organised private sector stakeholders have faulted the proposed ₦100,000 national minimum wage, warning that it may place unsustainable pressure on businesses, especially small and medium-scale enterprises already struggling with rising operational costs.

Business leaders argue that while the wage increase reflects Nigeria’s worsening cost of living, it cannot be uniformly applied across both public and private sectors without considering industry differences and financial capacity.

Private sector concerns

The Lagos Chamber of Commerce and Industry (LCCI) stated that many businesses are already facing high production costs, inflation, weak consumer demand, and rising energy expenses, making it difficult to sustain higher wage obligations.

The Nigeria Employers’ Consultative Association (NECA) also noted that wage adjustments must follow proper tripartite negotiations and not be driven solely by political announcements, stressing that affordability differs across sectors.

SMEs warn of job risks

Small business operators and manufacturers say the proposed ₦100,000 minimum wage could force many firms to cut jobs or shut down if implemented without economic support measures.

They argue that large corporations in sectors like banking, oil and gas, and ICT may afford higher wages, but most SMEs operate on thin profit margins and may struggle to comply.

Call for broader reforms

Private sector groups are urging government to focus on reducing inflation, improving infrastructure, stabilising energy supply, and lowering the cost of doing business rather than enforcing a high wage benchmark.

They maintain that sustainable wage growth must be tied to productivity and economic stability to avoid worsening unemployment and business closures.