LCCI Backs NECA, Says Wage Deals Without Employers Unsustainable

… N70,000 allowance treats symptoms, not cause, group insists

The Lagos Chamber of Commerce and Industry (LCCI) has thrown its weight behind the Nigeria Employers’ Consultative Association (NECA), saying wage and allowance arrangements struck between government and labour without the input of employers cannot be sustainable, because the private sector bears the consequences all the same.

The Director-General of LCCI, Dr. Chinyere Almona, said this while reacting to the federal government’s N70,000 transport allowance for public servants. She insisted that the allowance addresses the symptoms but not the cause of Nigeria’s high commuting costs.

Her position aligns with that of NECA, which has argued that wage negotiations must involve three parties: government, employers and organised labour. Speaking at the 2026 annual conference of the Labour Correspondents Association of Nigeria in Abuja, NECA said bilateral agreements between government and labour are not sustainable. [Insert NECA spokesperson’s name, title and direct quote.]

Almona acknowledged that government has an obligation to negotiate wages and allowances with the unions representing its personnel. She noted, however, that some of these negotiations may involve political considerations among selected parties, while the private sector is left to absorb the effects.

“[Insert Almona’s direct quote on employer involvement in wage negotiations, if she made one.]”

She explained that the private sector feels the impact of such deals because it and the public sector operate in the same markets under the same economic conditions. Workers in both sectors face the same prices for transport, food and housing, and employers in the private sector come under pressure to respond to whatever government concedes.

The allowance, approved for public servants for six months from November 2026, is intended to cushion workers against rising transportation costs and the erosion of their purchasing power.

According to the LCCI DG, the intervention will help workers meet commuting expenses and preserve income for other necessities. But she said it remains temporary, particularly if transport and living costs stay high beyond the implementation period.

“Transportation costs remain influenced by fuel prices, inadequate mass transit, road congestion, infrastructure deficiencies and the concentration of employment opportunities in major urban centres,” she said.

Almona pointed to the latest inflation figures to show why the pressure on households has not eased. Although headline inflation moderated to 14.63 per cent in September 2026, food inflation remained high at 19.59 per cent, indicating sustained pressure on household purchasing power.

Lower inflation, she stressed, does not mean prices have returned to previous levels, only that they are rising at a slower rate.

She urged government to complement the allowance with investments in affordable mass transit, staff buses, improved urban mobility and flexible working arrangements where appropriate. Such measures, she said, would give more lasting benefits by reducing commuting expenditure and improving productivity for workers across both public and private sectors.

The Chamber maintained that the allowance should be treated as temporary relief rather than a substitute for sustainable improvements in wages, transportation infrastructure and the broader cost of living.