₦70k Minimum Wage: NACCIMA Opposes Jail Term for Non-Compliance

The Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA) has praised the Federal Government’s move to implement a new ₦70,000 minimum wage for workers. However, the association voiced concerns over the proposed penalties for non-compliance, particularly the threat of imprisonment for defaulters, calling the measure counterproductive.

In a statement released on Thursday by NACCIMA’s National President, Dele Oye, the association acknowledged the government’s efforts to improve wages but urged caution on punitive measures.

“NACCIMA commends the Federal Government’s decision to commence the payment of the new minimum wage of ₦70,000,” the statement read. “However, we express concerns about the threat of imprisonment for defaulters, as this approach may not be helpful in addressing the broader economic challenges.”

Oye further called on state and local governments yet to implement the new wage to act promptly, while encouraging the government to adopt a more collaborative approach. He emphasized the importance of engaging with stakeholders, including labor unions, to address concerns about the rising cost of fuel and other economic pressures affecting businesses and workers.

The Federal Government, on September 19, 2024, mandated private sector employers to comply with the ₦70,000 minimum wage, warning that failure to do so would not be tolerated. The new wage policy, the government argued, is essential in addressing the country’s current economic challenges, ensuring that no worker, whether in public or private employment, earns below the threshold.

Alhaji Ismaila Abubakar, Permanent Secretary of the Federal Ministry of Labour and Employment, reiterated the government’s stance while speaking at the 13th Annual General Meeting of the Employers Association for Private Employment by Agencies of Nigeria, held in Ikeja, Lagos.