Employers Reject FG's Pension Contribution Increase Proposal

The Organised Private Sector of Nigeria has expressed strong opposition to the Federal Government's proposal to increase mandatory pension contributions, which includes an additional annual contribution of three percent of an organization’s total wage bill. This stance was articulated in a joint statement by several business associations, including the Manufacturers Association of Nigeria (MAN), Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), Nigeria Employers’ Consultative Association (NECA), Nigerian Association of Small and Medium Enterprises (NASME), and Nigerian Association of Small Scale Industrialists (NASSI).

The groups argue that the proposed increase could exacerbate existing challenges for businesses and workers. They highlighted that the current pension contribution rate is already 18 percent of monthly emoluments, with employers contributing 10 percent and employees contributing eight percent.

Adewale-Smatt Oyerinde, Director-General of NECA, emphasized the need for thorough consultations before any changes are made, asserting that any adjustments to contribution rates should be based on comprehensive studies demonstrating the inadequacy of the current framework.