- The Manufacturers Association of Nigeria praised President Tinubu for the N70,000 minimum wage agreement and anticipates support for private sector compliance
- MAN’s Director-General emphasized the need for assistance in addressing the challenges faced by businesses in complying with the new minimum wage
The Manufacturers Association of Nigeria (MAN) has praised President Bola Tinubu for achieving a breakthrough on the long-awaited minimum wage for Nigerian workers. The private sector is looking forward to the president’s promise to assist them in complying with the new wage.
MAN’s Director-General, Mr Segun Ajayi-Kadir, expressed this commendation in response to the N70,000 minimum wage agreement reached between President Tinubu and labour union leaders on Thursday in Abuja.
The News Agency of Nigeria (NAN) reports that President Tinubu increased the minimum wage from the current N30,000 to N70,000 and assured that it would be reviewed after three years. He also promised to explore ways to assist the private sector and subnational entities in paying the new minimum wage.
Ajayi-Kadir emphasized that manufacturers anticipated the promised assistance and urged the private sector to trust the president’s commitment to supporting compliance with the new wage.
“In this regard, I assume reference would be made to the demands presented by the Organized Private Sector during the final stages of the tripartite negotiations. We highlighted the challenges facing businesses in the private sector and the need to address these issues to improve our members’ capacity to pay the minimum wage,” Ajayi-Kadir said.
He noted that the private sector had communicated its challenges and that these constraints might impede full compliance with the new minimum wage once it is signed into law. Ajayi-Kadir expressed optimism that President Tinubu would prioritize addressing these challenges, thereby facilitating the private sector’s alignment with the new wage agreement.
Ajayi-Kadir outlined several demands to enable the private sector to comply with the new minimum wage:
- Exemption for SMEs and MSMEs: Due to their incapacity and prevailing operational challenges, Small and Medium Enterprises (SMEs) and Micro, Small, and Medium Enterprises (MSMEs) should be exempted from compliance.
- Redemption of Forex Forwards: The Central Bank of Nigeria (CBN) should redeem all validly transacted outstanding foreign exchange forwards for companies in the productive sector.
- Electricity Tariff Adjustment: A reversal of the recent electricity tariff increase or a 100% increase in electricity tariffs should guarantee a minimum of 20 hours of supply.
- Duty Exemption on Conversion Kits: Duty exemption on imported conversion kits, government subsidies on procurement, and a freeze on new taxes on businesses for the next five years.
- Fixed Import Duty Rate: A fixed rate of N800 for assessing import duty on all production inputs.
- Financial Reporting Council Regulation: A review of the recent Financial Reporting Council regulation to limit its application to private businesses.
- Discontinuation of Price Verification Portal: The Price Verification Portal should be discontinued as it is detrimental to business operations, and its original purpose is no longer relevant.
Ajayi-Kadir concluded by expressing optimism that the positive atmosphere created by the recent agreement between the government and labour would lead to speedy consideration and acceptance of these demands.