Organised Private Sector Opposes Pension Contribution Hike, Warns of Job Losses
Organised Private Sector Opposes Pension Contribution Hike, Warns of Job Losses
The Organised Private Sector of Nigeria (OPSN) has rejected the National Pension Commission’s proposal to raise mandatory pension contributions, warning the move could hurt businesses, jobs and workers’ take‑home pay. OPSN, which groups MAN, NECA, NACCIMA, NASME and NASSI, said the current 18 % rate – employers 10 %, employees 8 % – already matches the OECD average and any increase must be backed by Nigeria‑specific actuarial proof that the present rate is insufficient and that a higher rate won’t harm employment, wages, compliance or business sustainability.
NECA DG Adewale‑Smatt Oyerinde called the proposal premature and counterproductive, saying announcing a possible hike while consultations continue undermines stakeholder engagement and makes the process look predetermined. MAN DG Segun Ajayi‑Kadir noted firms are already battling high energy costs, rising interest rates, exchange‑rate volatility, weak consumer demand and multiple regulatory burdens; an extra pension levy could force companies to slow recruitment, delay salary reviews, cut staff or pass costs to consumers through higher prices, ultimately weakening wage growth, cutting jobs and raising living costs.
NACCIMA DG Sola Obadimu warned against piling extra financial obligations on businesses still recovering from economic shocks, urging coordinated policies that assess cumulative impact on investment and employment. NASSI DG Ifeanyi Oputa added that micro, small and medium enterprises would bear the brunt of any increase. OPSN urged the Federal Government and PenCom to focus on measures that boost macroeconomic stability, protect businesses and preserve jobs instead of introducing cost‑raising measures.
With pension contributions already at 18 %, will you absorb a higher deduction from your salary, or would you prefer employers to absorb the cost and risk possible job cuts or price hikes?