Leaders in Nigeria’s organised private sector have expressed concerns over proposals to raise the minimum wage to N100,000, arguing that many businesses, particularly small and medium-sized enterprises (SMEs), may not be able to sustain such an increase.
The concerns come amid discussions about a possible review of the national minimum wage and recent decisions by some state governments to adopt a N100,000 wage floor for their workers.
Business groups acknowledged the need to improve workers’ earnings in response to rising living costs but stressed that private employers operate under different financial realities and should not be compelled to match government wage levels.
President of the Lagos Chamber of Commerce and Industry (LCCI), Leye Kupoluyi, stated that businesses should not be required to pay a wage level beyond their financial capacity. He noted that many companies are already dealing with significant challenges, including inflation, high energy costs, poor infrastructure and declining consumer purchasing power.
Kupoluyi called on government authorities to address structural issues affecting businesses, such as transportation bottlenecks, refinery operations and support for critical industries, arguing that these measures would improve the ability of companies to pay higher wages sustainably.
Similarly, Director-General of the Nigeria Employers’ Consultative Association (NECA), Adewale Oyerinde, said that while the proposed wage increase reflects current economic realities, any nationally binding minimum wage must emerge through formal negotiations involving government, labour unions and employers.
According to Oyerinde, wage adjustments announced by state governments cannot automatically become mandatory for private sector operators without following established consultation procedures. He added that reducing the cost of living could provide more meaningful relief to workers than imposing wage increases that many businesses cannot afford.
Representatives of small business organisations also warned that many SMEs remain under severe financial pressure. National Vice President of the National Association of Small-Scale Industrialists, Segun Kuti-George, said most businesses are already struggling with rising production costs and shrinking profit margins.
The President of the Association of Small Business Owners of Nigeria, Dr. Femi Egbesola, described the proposed N100,000 wage as understandable given current economic conditions but cautioned that implementation would depend on the financial strength of individual companies.
He noted that larger corporations may be able to absorb higher labour costs, while many smaller enterprises face challenges from inflation, expensive energy, weak demand and other operating expenses.
Chief Executive Officer of the Centre for the Promotion of Private Enterprise, Dr. Muda Yusuf, observed that wage levels vary widely across industries. He explained that sectors such as banking, oil and gas, and information technology already pay salaries well above N100,000, while businesses in manufacturing, agriculture, retail, hospitality and education continue to face significant financial pressures.
Yusuf added that some employers are still finding it difficult to comply fully with the existing N70,000 minimum wage due to rising operating costs and sluggish consumer spending.
The business leaders concluded that creating a more supportive business environment and reducing the cost of doing business would be a more effective way to improve workers’ welfare while preserving jobs and supporting economic growth.
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