The Centre for the Promotion of Private Enterprise (CPPE) has called for a fundamental shift in Nigeria’s labour welfare strategy, urging policymakers, labour unions, and employers to move beyond a narrow focus on wage increases and adopt a more comprehensive approach that addresses the broader cost-of-living challenges facing workers.
In a policy statement signefd by the Chief Executive Officer of CPPE, Dr Muda Yusuf, noted that while wage adjustments remain necessary, particularly in the face of rising inflation and mounting economic pressures, they are insufficient as a standalone solution. The organisation emphasized that in Nigeria’s current economic environment, characterized by persistent inflation, high energy costs, and structural inefficiencies, nominal wage increases are often quickly eroded, leaving workers with little real improvement in their living standards.
According to CPPE, the priority of labour welfare policy should be the protection of real incomes rather than nominal wage growth alone. The organisation highlighted that rising costs of food, transportation, housing, and energy continue to place a significant strain on households, particularly low- and middle-income earners. As such, labour advocacy must expand its focus to include structural interventions that directly reduce the cost of living and improve access to essential services.
The organisation identified several critical non-wage priorities that require urgent attention. These include improving healthcare access through expanded insurance coverage, strengthening pension systems to ensure retirement security, addressing job insecurity driven by casualisation, and reducing the burden of energy costs through improved power supply and efficiency. CPPE also stressed the need for investment in affordable mass transit systems to lower commuting costs, as well as expanded housing initiatives to address rising urban rents.
In addition, CPPE underscored the importance of skills development and capacity building as a pathway to long-term income growth and productivity. It also called for stronger social protection systems, including unemployment insurance and targeted safety nets, to support workers during periods of economic vulnerability. The organisation further advocated tax reforms to increase disposable income for low- and middle-income earners, noting that workers’ welfare ultimately depends on what they take home after taxes.
CPPE also recommended the institutionalisation of more predictable and transparent wage adjustment mechanisms, such as inflation-linked wage systems and cost-of-living adjustments, to ensure that workers’ earnings remain aligned with economic realities.
The organisation urged the government to strengthen public service delivery in key sectors—including healthcare, education, transportation, and power—as a means of reducing household expenditure burdens and improving overall welfare outcomes. It also called for policies that boost productivity in agriculture, energy, and logistics, alongside stronger enforcement of labour regulations, pension compliance, and workplace standards.
Concluding, CPPE stated that Nigeria’s current economic realities demand a more strategic and sustainable approach to labour welfare. While wage increases remain important, they must be complemented by broader reforms that address structural challenges, reduce living costs, and enhance economic resilience.
“A holistic welfare framework anchored on structural reforms, improved public services, and stronger institutions is essential to delivering meaningful and lasting improvements in the quality of life of Nigerian workers,” the statement added.
