Manufacturers Association of Nigeria Sets Conditions for Compliance with New N70,000 Minimum Wage

The Manufacturers Association of Nigeria (MAN) has outlined specific conditions for the organized private sector to meet the recently established N70,000 minimum wage. 

In a statement issued by the Director General, Segun Ajayi-Kadir, MAN emphasised the need for government intervention to address several challenges faced by businesses within the private sector, which were brought to light during tripartite negotiations.

The following are the key requests made by MAN to facilitate compliance:

1. Exemption for SMEs and MSMEs: Due to operational challenges, MAN seeks to exempt small and medium-sized enterprises (SMEs) and micro, small, and medium enterprises (MSMEs) from the new minimum wage compliance.

2. Forex Redemption: The association calls for the Central Bank of Nigeria (CBN) to redeem outstanding foreign exchange forwards for companies in the productive sector.

3. Electricity Tariff Reversal: MAN demands either a reversal of the recent electricity tariff increase or a guarantee of a 100 percent increase in supply for at least 20 hours daily.

4. Duty Exemption and Subsidies: Duty exemption on imported conversion kits and government subsidies are requested to ease the burden on businesses.

5. Tax Freeze: A freeze on the introduction of new taxes for the next five years to stabilise the financial environment for businesses.

6. Fixed Import Duty Rate: A fixed rate of N800 for import duty assessment on production inputs is proposed.

7. Regulation Exclusion: Revisiting the Financial Reporting Council regulation to exclude private businesses from its requirements.

8. Price Verification Portal: MAN urges the discontinuation of the Price Verification Portal.

The association expressed its gratitude to President Bola Tinubu for facilitating the conclusion of the negotiations and urged him to address these challenges promptly. 

MAN warned that without resolving these binding constraints, full compliance with the new minimum wage law might be hindered.

The tripartite committee, composed of government, private sector representatives, and labor unions, initially reached an impasse, with the government proposing N62,000 and labor unions demanding N250,000. 

President Tinubu’s intervention led to the accelerated conclusion of the negotiations, resulting in the agreed N70,000 minimum wage.