The Organised Private Sector of Nigeria has expressed deep concern over the recent announcement by the Director-General of the National Pension Commission regarding a proposed increase in mandatory pension contributions and the introduction of an additional three per cent mandatory annual contribution equivalent to three per cent of the total wage bill.
The OPSN members include the Manufacturers Association of Nigeria, the National Association of Chambers of Commerce, Industry, Mines and Agriculture, the Nigeria Employers’ Consultative Association, the Nigerian Association of Small and Medium Enterprises, the Nigerian Association of Small Scale Industrialists, and 25 sectoral employer associations.
In a statement on Thursday jointly signed by MAN, NACCIMA, NECA, NASME and NASSI, obtained by The PUNCH, the OPSN described the proposed hike as both premature and counterproductive.
While the proposal may be presented as an effort to improve retirement benefits, the OPSN warned that, under the prevailing economic conditions, it could become a “Greek gift” to Nigerian workers, “an apparently beneficial policy that ultimately threatens employment, wage growth, business sustainability and escalates compliance risks.”
