The Organised Private Sector of Nigeria (OPSN) has called on the Federal Government and the National Pension Commission (PenCom) to suspend plans to increase mandatory pension contributions, warning that the proposal could worsen the challenges facing businesses and workers.
The group, which includes MAN, NACCIMA, NECA, NASME, NASSI and other employer associations, argued that the proposed increase and an additional mandatory annual contribution equivalent to three per cent of employers’ total wage bill could lead to job losses, slower wage growth, higher production costs and business closures if implemented under current economic conditions.
Speaking for the group, NECA Director-General Adewale-Smatt Oyerinde said OPSN supports efforts to strengthen Nigeria’s pension system but insisted that any review should follow broad stakeholder consultations and be backed by credible economic, employment and actuarial impact assessments. He noted that the current minimum contribution rate of 18 per cent already compares favourably with global standards.
The business groups also warned that additional payroll costs could discourage recruitment, delay salary reviews, increase consumer prices and place greater pressure on small and medium-sized enterprises already battling inflation, high energy costs and limited access to finance. They urged the government to focus on policies that support business growth, protect jobs and preserve workers’ purchasing power before considering any increase in pension contributions.
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