Members of the organised private sector have cautioned against expecting private sector employers to automatically match the N100,000 minimum wage being adopted by some state governments. They warned that many small and medium-sized enterprises are already struggling under rising production costs and shrinking profit margins.
The business groups said that while some large firms and thriving sectors of the economy could afford wages above N100,000, most SMEs were battling high operating costs, inflation, energy expenses and weak consumer demand.
The comments followed growing speculation over the possibility of a new national minimum wage and the decision by some state governors to raise workers’ pay to N100,000.
President of the Lagos Chamber of Commerce and Industry, Leye Kupoluyi, said the private sector should not be compelled to pay the same wage level as the government if businesses could not afford it.
“National minimum wage does not necessarily mean private sector operators must pay their workers the same level if they cannot afford such a level at the time of introduction. This point is based on too many cost burdens that businesses are coping with at this time,” Kupoluyi said.
