Business NECA Opposes NLC, Approves Removal of Minimum Wage from Exclusive List

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The Nigeria Employers’ Consultative Association in a statement by its Director-General, Mr Olusegun Oshinowon has applauded FG’s decision to move the minimum wage from the exclusive list to the concurrent list, as against the wishes of labour unions in the country, the Punch reports.

“We do not see anything wrong in the intention of the lawmakers to move minimum wage to the concurrent list. The ability to pay by employers, whether as government or as a private sector enterprise, is a key factor in employment relationship and sustenance of industrial harmony. This, of course, is best determined at a level close to the direct actors. We, therefore, wholly subscribe to the principle of devolution and decentralisation of the wage component of labour matters.”

It argued that the country was operating a federal constitution, which should ascribe significant power and responsibilities to the federating states, including the right and power of the component units to define and determine the minimum wage in their precincts.

"States can still exercise their right to legislate on minimum wage subject to the extant law on national minimum wage. The United States of America is a very good example in this regard. The various states legislate on their own minimum wages in deference to the federally – determined national minimum wage.”

"It is, however, important for it to explain how all this will work out so that the state governments will not walk away with the belief that they will not be bound by the national minimum wage when the Federal Government legislates on this.”


#Nigeria #NLC #NECA #Punch

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