The Manufacturers Association of Nigeria (MAN) has called for Micro, Small, and Medium Enterprises (MSMEs) to be exempted from the new N70,000 minimum wage due to their financial and operational challenges.
In a statement, MAN commended President Bola Tinubu for the breakthrough on the long-awaited minimum wage for Nigerian workers. However, Director-General Segun Ajayi-Kadir highlighted the inability of small businesses to afford the new wage level amidst recent economic challenges.
Ajayi-Kadir, reacting to the agreement reached by President Tinubu and labor union leaders in Abuja, stressed the need for promised assistance to enable the private sector to comply with the new wage law. He stated, “Manufacturers look forward to the promised assistance and urge the private sector to hold onto the President’s promise to enable compliance with the agreement.”
Ajayi-Kadir referenced demands made by the Organised Private Sector during tripartite negotiations, emphasizing the necessity of addressing challenges to improve the capacity of businesses to pay the minimum wage. He noted that these constraints could impede MAN members’ full compliance when the new wage is implemented.
Ajayi-Kadir’s demands for supporting the private sector included:
Exemption for MSMEs: Due to their operational challenges and incapacity.
CBN Action: Redeem outstanding foreign exchange forwards for companies in the productive sector.*Electricity Tariffs**: Reverse recent increases or limit the hike to 100% for at least 20 hours of supply.
Duty Exemptions: On imported conversion kits and subsidies on procurement.
Tax Moratorium: Freeze on new taxes for the next five years.
Fixed Import Duty Rate: Set at N800 for assessing import duty on all production inputs.
Financial Regulations Revisit recent Financial Reporting Council regulations for private businesses.
Discontinue Price Verification Portal: As its initial purpose no longer exists.
Ajayi-Kadir expressed optimism that the recent agreement between the government and labor would facilitate the speedy consideration and acceptance of these recommendations, fostering a positive atmosphere for compliance
