The Lagos Chamber of Commerce and Industry (LCCI) has raised alarms regarding the inadequate implementation of the recently established minimum wage of N70,000 across various states in Nigeria. LCCI President Gabriel Idahosa highlighted the urgency of the situation during a recent address, pointing out that, while some states have begun to adhere to the new policy, a significant number have yet to initiate payment. This oversight directly affects the economic well-being of workers within these states, leaving them vulnerable to financial instability and hardship. The organization has noted that states like Ogun, Ekiti, Sokoto, Kebbi, Osun, Enugu, Borno, Zamfara, Kogi, Kwara, Gombe, Kano, Taraba, Delta, Rivers, Jigawa, and Abia have established committees tasked with the execution of the minimum wage policy, yet the delay in its implementation is concerning.
Earlier in the year, the Federal Government enacted a law to increase the national minimum wage from N30,000 to the new rate of N70,000, marking a significant move aimed at enhancing the living standards of workers in the country. The LCCI has stressed the need for the Federal Government to enforce compliance on a nationwide scale. With improved disbursements from the Federation Accounts Allocation Committee, many states have the financial capacity necessary to meet this wage requirement. However, the disparity between states that are compliant and those that have not yet implemented the new wage exposes systemic issues, highlighting the urgency for federal oversight to ensure uniform adoption across Nigeria.
In addition to the minimum wage concerns, the LCCI has expressed significant worries about the plight of micro, small, and medium enterprises (MSMEs) in Nigeria. The organization emphasized that soaring lending rates are hindering the growth and sustainability of these businesses, which are vital to the Nigerian economy. Idahosa has called upon the Central Bank of Nigeria to incentivize commercial banks to offer credit at concessionary rates that fall below the prevailing monetary policy rate. Such measures are viewed as essential for enabling MSMEs to enhance production capacities, maintain their operations, and create job opportunities, ultimately alleviating some of the adverse effects of inflation on consumers’ purchasing power.
Nigeria’s inflation rate remains a critical issue, having surged to 32.7 percent in September from 32.15 percent in August, exacerbating the economic pressures on citizens. In response, Idahosa has advocated for a holistic approach to inflation management that favors supply-side interventions over mere demand management. He underscored the importance of boosting agricultural production, investing in infrastructure, and revitalizing oil refineries as key strategies for price stabilization. The LCCI’s recommendations reflect a growing recognition that addressing macroeconomic challenges requires integrated fiscal and monetary policy efforts, particularly in the context of the nation’s floating exchange rate system, which has raised concerns about the stability of the naira.
The LCCI has also commended the government’s recent measures, such as introducing direct purchase mechanisms for premium motor spirit and the call for full deregulation within the oil and gas sector. Idahosa expressed support for ongoing reforms, including the Petroleum Industry Act and the initiation of naira payments for crude oil sales that began in October. He noted the transition to compressed natural gas mobility as a positive step forward, alongside the removal of value-added tax (VAT) on diesel and cooking gas. He emphasized the importance of aligning these changes with essential infrastructure development, such as CNG refueling stations, to ensure that energy becomes more accessible and affordable for the populace.
Lastly, recognizing the urgent issue of food inflation in Nigeria, the LCCI has advocated for the recommendations put forth by the Presidential Livestock Reforms Committee, which aim to enhance productivity within the livestock and aquaculture sectors. Considering that these sectors play an instrumental role in addressing food price increases, the chamber called upon the government to navigate the complex dynamics of the farmer-herder crisis with care and understanding. Policies regarding grazing and ranching should be managed in a balanced manner to mitigate conflicts and ensure sustainable agricultural practices. By addressing these multifaceted challenges, the LCCI hopes to foster a more resilient economic environment for all stakeholders in Nigeria.
