The Director-General of the Nigeria Employers’ Consultative Association (NECA), Adewale-Smatt Oyerinde, has announced that employers have already begun preparations for the next round of national minimum wage negotiations scheduled for 2027. In a recent interview, Oyerinde outlined NECA's stance on critical issues including the new tax laws, business challenges, and the controversial ban on alcohol in sachets.
Early Preparations for 2027 Minimum Wage Talks
Oyerinde confirmed that the process for the upcoming minimum wage discussion is already underway. NECA is establishing policy working groups to proactively address potential issues before they arise. The association is also engaging with the International Labour Organisation (ILO) for capacity building to ensure employers are well-prepared for the negotiations at the national committee.
He stated that 2026 will see increased debate around the concepts of a minimum wage versus a living wage in Nigeria. However, Oyerinde emphasized that beyond mere figures, the focus should be on solving four core issues affecting workers: transportation, food, shelter, and education. He argued that fixing and restoring trust in public schools would significantly reduce workers' expenses, making their wages more sufficient.
"Let it be on record that we absolutely support decent wages and decent jobs," Oyerinde declared. He pointed to NECA's Responsible Business Conduct project, launching in 2026, as a reinforcement of this commitment to responsible treatment of workers and all stakeholders.
Position on 2026 Tax Reforms and Business Climate
On the new tax laws effective from January 1, 2026, the NECA DG offered conditional support. He argued that if the government's goal is to grow output and create jobs through a strong private sector, then policies that stifle businesses are counterproductive. He highlighted the critical link between unemployment and insecurity.
Oyerinde revealed a staggering statistic: an average Nigerian business currently pays over 90 different taxes, levies, and fees. Therefore, he stated that a reform aimed at streamlining taxes, reducing multiplicity, simplifying compliance, and providing reliefs to both employees and employers deserves support. He advocated for moving forward with the reform, with amendments made later as genuine concerns emerge, stating that refusal to act would be "a crime against the country."
Regarding business survival amid recent economic challenges, Oyerinde noted that while some businesses did not survive, many transformed rather than completely shutting down. He cited examples from the COVID-19 pandemic where members pivoted to logistics. NECA now plans to focus on better data management to gain clearer insights into the real state of employers and the economy.
Warning on Alcohol Sachet Ban and Labour Relations
Oyerinde strongly criticized the ban on alcohol sold in sachets and small bottles, warning of serious risks. He predicted significant job and investment losses across the value chain and warned that a blanket ban could encourage smuggling, especially given Nigeria's numerous unmanned border points. He questioned how such job losses align with the government's broader economic objectives and called for strengthening institutions instead of imposing bans.
On the relationship with organised labour, the NECA DG described it as largely constructive. Alignment exists on decent work, the national minimum wage, and workers' welfare. He expressed principle-based support for a living wage but wants the ILO to define clear parameters first.
The main area of disagreement, according to Oyerinde, is when actions violate established dispute-resolution frameworks like the Industrial Arbitration Panel and the National Industrial Court. He emphasized the need to respect these tripartite mechanisms. Ultimately, he stated that the goal is to find a realistic and sustainable balance between workers affected by inflation and employers burdened by high costs, a balance that supports job creation and economic growth.
