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Businesses in Nigeria lost over one trillion naira between 2022-2023, affecting job security – DG, NECA 

The Director-General of Nigeria’s Employers’ Consultative Association (NECA) Mr Adewale-Smatt Oyerinde has said that between 2022-2023, organised businesses lost over one trillion naira cumulatively.  

Oyerinde further stated that many businesses were shut down with many others relocating to other climes which has necessitated the need for job security.

He harped on the need to have sustainable enterprises to create job security. Therefore, he advised that organized businesses have to do all that is legally permissible to protect enterprise sustainability, security of jobs and national development. 

What he said

According to Oyerinde, 

While we understand and note the current high cost of living, it is pertinent to state that there can only be jobs when enterprises are alive and sustainable. 

“Between 2022-2023, organised businesses lost over one trillion naira cumulatively. 

“Many businesses were shut down and others relocating to other climes; this makes the need for job security important”, he said. 

This is also reflective of a UNDP report, which states that disruption in business operations was evident with at least two-thirds of businesses operating in the country having to close down during and after the pandemic.  

Businesses also resorted to laying off employees to survive and shutdowns of enterprises severed crucial livelihood lines for households that depended on them for income.

The lack of new business opportunities and reduction in capital investment further limited new job prospects. 

On the National minimum wage issue 

  • Oyerinde also discussed the choice made by organised labour and the negotiations on a new minimum wage. 
  • He pointed out that one side could not unilaterally determine the timetable or the viability of the conclusion in a discussion that was either tripartite or bipartite.
  • He stated that all parties will decide together on the timeframe and favorability. 

“We hope that reason will prevail and the 100% increase in the national minimum wage will be acceptable to organised labour, “ Oyerinde said. 

He voiced worries that important factors like the need to preserve jobs, productivity, and ability to pay were not given enough consideration during the negotiations of the new national minimum wage. 

He added that while it was vital to pay wages that were in line with economic reality, the tripartite committee’s job was to establish a “minimum” salary that no employer, private or public, should ever pay less than. 

“It is not a wage increase, neither is it a salary adjustment process, as being peddled, “ he said. 

Meanwhile, the Nigeria Labour Congress (NLC) and Trade Union Congress of Nigeria (TUC) declared an indefinite strike to begin on June 3.

This was made In a joint statement signed by NLC President, Mr Joe Ajaero and TUC President, Mr Festus Osifo  after the tripartite committee’s inability to agree on a new minimum wage and the hike in electricity tariff. 

Ngozi Ekugo

Ngozi Ekugo

A high-performing labour market analyst/ talent acquisition specialist providing research on labor availability, labour migration, workplace trends and career development opportunities. Having worked across various sectors such as the recruitment, consulting, investment banking (Goldman Sachs) and the media, both in Nigeria and the United Kingdom, I possess a unique blend of competencies and experience to thrive in any industry.

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