The Nigeria Employers’ Consultative Association has warned that the country’s industrial relations system is nearing a breaking point due to high inflation and rising living costs.
NECA’s Director-General, Adewale-Smatt Oyerinde, stated that the economic pressure created by recent macroeconomic policies, especially the removal of fuel subsidies, has placed unprecedented stress on both workers and employers.
High inflation has severely eroded workers’ purchasing power, making wage disputes more frequent, urgent, and difficult to resolve. Employers are also struggling to stay afloat due to rising production costs, energy expenses, and imported inputs, making it challenging to sustain wage increments amid shrinking margins. “High inflation has severely eroded workers’ purchasing power, making wage disputes more frequent, urgent, and difficult to resolve, as employers face parallel hikes in operational costs,” Oyerinde said.
The inflation crisis has intensified wage disputes and heightened labour tensions across key sectors. NECA is advocating for a shift in wage policy from mere cost-of-living adjustments to productivity-linked pay systems. This approach would ensure that wage increases are sustainable for businesses while protecting workers from economic shocks. “It is time to focus collective bargaining and minimum wage negotiations on productivity-based parameters,” Oyerinde emphasized.
Oyerinde urged the Federal Government to act swiftly to ease economic pressures and strengthen the nation’s industrial relations framework. He suggested that the government should utilize savings from reforms like subsidy removals to build robust social safety nets that cushion the impact of inflation on vulnerable workers. “Government must utilize savings from reforms such as subsidy removals to build robust social safety nets that cushion the impact of inflation on vulnerable workers,” he said.
NECA also called for stronger enforcement of labour laws, faster passage of pending Labour and Employment Bills, and renewed government commitment to social dialogue. The association emphasized the need for urgent reforms to stabilize the economy and restore confidence in industrial institutions to prevent widespread workplace unrest.
The labour union has expressed its commitment to protecting workers’ rights and welfare, urging members to remain resolute and united in their demands. With Nigeria’s economic challenges showing no signs of abating, the outcome of the meetings between the government, labour, and employers will be closely watched.
