The Nigeria Employers’ Consultative Association (NECA) has insisted that negotiations on the national minimum wage must involve the Federal Government, employers and organised labour, noting that bilateral agreements cannot substitute for the statutory tripartite process.
It warned that unrealistic increases in the national wage could undermine business sustainability, weaken compliance and threaten employment.
Relatedly, the President of Nigeria Labour Congress (NLC), Joe Ajaero, questioned the Trade Union Congress’ (TUC) rejection of the Federal Government’s proposed N70,000 transport allowance, saying the union was not involved in negotiations with the government.
Ajaero warned that raising the national minimum wage to N1 million would not resolve Nigeria’s economic crisis, insisting that reducing the cost of living and strengthening the naira’s purchasing power were critical to improving workers’ welfare.
NECA also cautioned against treating the national minimum wage as an automatic salary increase for all categories of workers, saying consequential adjustments and general wage increases should be addressed through collective bargaining, contractual arrangements and enterprise-level negotiations.
NECA’s position comes as the Federal Government and organised labour continue engagements over workers’ welfare, purchasing power and the rising cost of living ahead of the formal minimum wage negotiation process.
In a statement yesterday, signed by its Director-General, Adewale-Smatt Oyerinde, NECA acknowledged workers’ concerns over the deteriorating purchasing power, but maintained that any minimum wage determination must balance workers’ needs with employers’ capacity to pay, productivity, employment generation and enterprise sustainability
The employers’ body said the process must be inclusive, transparent and evidence-based, in line with relevant conventions and recommendations of the International Labour Organisation (ILO).
According to NECA, the principle of tripartism is embedded in ILO Convention No. 131 on minimum wage fixing, Convention No. 26 on minimum wage fixing machinery, and the accompanying recommendations on minimum wage determination.
“While NECA respects the right of government and organised labour to hold bilateral discussions, such engagements cannot substitute for the statutory tripartite process,” it said.
It argued that organised private sector employers could not be regarded as parties to, or contractually bound by, agreements reached without their participation and concurrence.
However, NECA clarified that its position did not diminish employers’ obligation to comply with any national minimum wage validly established under the National Minimum Wage Act.
It called for evidence-based wage determination that balances workers’ welfare with employers’ capacity to pay.
Speaking in a goodwill message at the 2026 labour conference of the Labour Correspondents’ Association of Nigeria (LACAN), Oyerinde said the prevailing minimum wage of N70,000 emerged from negotiations in which the organised private sector participated through the Organised Private Sector of Nigeria.
Represented by a member of NECA, Abuja Geopolitical Group, Idorenyin Brooks, Oyerinde said minimum wage reviews should consider workers’ living costs, prevailing economic conditions, productivity, and businesses’ financial capacity to sustain employment.
He urged the government, employers and organised labour to adopt a transparent, credible framework for determining wages, warning that wage increases detached from economic realities could put additional pressure on enterprises and undermine job creation.
The conference, themed ‘The Future of Work: Minimum Wage, Economic Reforms and the 2027 Elections,’ brought together issues of workers’ welfare, economic policy and employment prospects ahead of the next general elections.
AJAERO said the NLC had made it clear from the beginning that it was negotiating independently of the TUC, making the latter’s opposition to the outcome surprising.
Speaking in an interview on Channels Television’s ‘Morning Brief’ yesterday, Ajaero said the TUC did not sign the agreement and argued that the union should not oppose an arrangement it did not negotiate.
“Why is TUC challenging what was got for the workers when we stated clearly that NLC was acting alone?” Ajaero asked. “The agreement was not signed by TUC, and you don’t kick against something that you didn’t negotiate, you never asked for.”
He added that he would have preferred the TUC to demand a higher allowance, so that both unions could negotiate with the government towards a common position.
Ajaero said the central issue was not simply how much workers earned but what their wages could buy amid rising living costs.
The labour leader’s position comes amid renewed pressure for improved wages following increases in the cost of petrol, transportation, food and other essential goods, which have continued to strain household budgets.
He argued that wage increases alone would not address the underlying economic challenges confronting workers if the cost of goods and services remained high.
The NLC president also maintained that any general wage increase must follow the appropriate negotiation process involving the relevant stakeholders.
The dispute comes as organised labour continues to press for measures to cushion workers against the effects of rising transportation costs and the wider cost-of-living crisis.