The Organised Private Sector (OPS) in Nigeria has strongly opposed the National Pension Commission’s (PenCom) plan to increase mandatory pension contributions, warning of severe economic consequences.

The business groups, including MAN, NECA, NACCIMA, NASME, and NASSI, described the proposal as a 'Greek gift' to workers, arguing it could lead to job losses, suppressed wage growth, and more businesses moving to the informal sector.

They emphasized that Nigeria’s current pension contribution rate of 18% (10% from employers, 8% from employees) is already comparable to OECD averages and cannot be raised without compelling actuarial evidence.The OPS called for Nigeria-specific actuarial studies and assessments of the impact on employment, wages, investment, and business sustainability.They also criticized the premature announcement of the proposal, stressing that stakeholder consultations must be completed before any decisions.

The groups warned that additional financial burdens on businesses, already struggling with high energy costs, interest rates, and weak demand, could force layoffs, delayed hiring, and higher prices for consumers.

The OPS urged the government and PenCom to suspend the pension hike until economic conditions improve, prioritizing inflation control and job creation.