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The Lagos Chamber of Commerce and Industry has expressed concern over the failure of many states to implement the new N70,000 minimum wage.
On Thursday, LCCI President Gabriel Idahosa noted that while a few states had commenced the payment, many were yet to implement the policy, leaving workers vulnerable to economic hardship.
Some states, including Ogun, Ekiti, Sokoto, Kebbi, Osun, Enugu, Borno, Zamfara, Kogi, Kwara, Gombe, Kano, Taraba, Delta, Rivers, Jigawa and Abia, set up a committee to implement the new minimum wage.
Meanwhile, Edo, Adamawa, Lagos States and the Federal Capital Territory have begun paying.
Earlier in the year, the Federal Government enacted a new law raising the national minimum wage to N70,000 from N30,000.
The chamber stressed that the Federal Government must ensure compliance across all states, especially with the improvement in Federation Accounts Allocation Committee disbursements, which had strengthened states’ capacity to meet the wage demand.
It also highlighted the plight of micro, small, and medium enterprises in Nigeria, noting that high lending rates continued to stifle business growth.
“The high cost of credit is a major concern for MSMEs, which are the backbone of the economy. We recommend that the Central Bank of Nigeria incentivise banks to provide credit at concessionary rates lower than the prevailing monetary policy rate,” Idahosa urged.
According to the LCCI boss, such interventions would help MSMEs improve production, sustain operations, and create jobs, thereby mitigating the negative impact of inflation on consumer purchasing power.
He also called for a comprehensive approach to address Nigeria’s persistent inflation, which reached 32.7 per cent in September, up from 32.15 per cent in August.
“We advise that fiscal and monetary authorities focus on the supply side of the economy rather than solely relying on demand management to curb inflation. Boosting agricultural production, investing in infrastructure, and reviving oil refineries are essential to stabilising prices,” Idahosa added.
He urged the government to harmonise its fiscal and monetary policies, particularly in managing Nigeria’s floating exchange rate, to strengthen the naira and reduce speculative activities in the foreign exchange market.
The LCCI boss commended the government’s decision to allow direct purchase mechanisms for premium motor spirit and called for full deregulation of the oil and gas sector to foster competition.
He also reiterated its support for ongoing oil sector reforms, including the Petroleum Industry Act and the naira payments for crude oil sales, which began in October.
“The transition to compressed natural gas mobility and the removal of VAT on diesel and cooking gas are commendable steps. We need to ensure these policies are supported by necessary infrastructure, such as CNG refuelling stations, to make energy more affordable for Nigerians,” Idahosa remarked.
The LCCI also advocated for the implementation of the Presidential Livestock Reforms Committee’s recommendations, particularly in increasing livestock and aquaculture productivity to curb rising food prices, in response to the growing food inflation.
“The livestock, fisheries, and poultry sectors are crucial to addressing food inflation. We call on the government to exercise caution and understanding in managing the farmer-herder crisis, ensuring that policies on grazing and ranching are balanced,” the chamber stated.
