Private Sector Warns Pension Hike Could Trigger Job Losses

The Organized Private Sector of Nigeria has urged the Federal Government and PenCom to drop plans for higher mandatory pension contributions. They warn the extra three per cent levy on employers’ wage bills could stifle job creation, suppress wages and threaten business survival amid current economic pressures. Industry bodies—including MAN, NECA, NACCIMA, NASME and NASSI—say Nigeria’s 18 per cent contribution rate already matches the OECD average. They insist any increase must be justified by actuarial evidence and follow thorough stakeholder consultations, not premature announcements. Manufacturers highlight soaring energy costs, high interest rates and exchange-rate volatility as reasons extra payroll charges would force hiring freezes, layoffs and price hikes. Small businesses fear falling into informality. The group calls for a full impact assessment, transparent dialogue and measures to protect workers’ purchasing power before raising pension costs.

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