…warns against job losses, suppressed wage growth amid inflation
Nigeria’s organised private sector (OPS) has declared its opposition to the National Pension Commission’s (PenCom) proposed hike in mandatory pension contributions, warning that the move could trigger job losses, suppress wage growth, and push more businesses into the informal sector.
In a joint statement issued by the OPS members – the Manufacturers Association of Nigeria (MAN), the Nigeria Employers’ Consultative Association (NECA), the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), the Nigerian Association of Small and Medium Enterprises (NASME), the Nigerian Association of Small Scale Industrialists (NASSI), alongside 25 sectoral employer associations, they described the proposal as a “Greek gift” to Nigerian workers.
The business groups argued that although the proposal is being presented as a measure to improve retirement benefits, it could ultimately weaken businesses, reduce employment opportunities and undermine the very pension system it seeks to strengthen.
The opposition follows comments by Omolola Oloworaran, PenCom director-general, indicating plans to increase mandatory pension contributions and introduce an additional annual contribution equivalent to three percent of employers’ total wage bill.
