The Centre for the Promotion of Private Enterprise (CPPE) has called for a major rethink of labour welfare policies in Nigeria, urging a move away from an overreliance on wage increases toward a more comprehensive strategy that addresses the rising cost of living and structural economic challenges.
In a policy brief released on Thursday, the organisation’s Chief Executive Officer, Muda Yusuf, said current discussions around workers’ welfare have been narrowly focused on salary adjustments, which he noted are often quickly eroded by inflation.
According to CPPE, Nigeria’s economic realities—marked by persistent inflation, high energy costs, and weak public service delivery—require a broader framework that prioritises the protection of real incomes rather than nominal wage growth.
“The central objective of labour welfare policy should be the protection of real incomes, not merely nominal wage increases,” the statement said.
The group identified rising food prices, transportation costs, and housing expenses as the most immediate threats to workers’ welfare, calling for structural interventions such as investment in mass transit systems, policies to boost agricultural productivity, and measures to moderate rent in urban centres.
On healthcare, CPPE raised concerns over high out-of-pocket expenses and urged expanded coverage under the National Health Insurance Authority, alongside stricter enforcement of employer-provided health insurance schemes.
It also highlighted the need to strengthen pension systems, improve compliance with remittances, and expand micro-pension schemes to cover workers in the informal sector.
Addressing labour market conditions, the organisation warned that increasing casualisation and contract employment have weakened job security.
It called for stronger regulatory frameworks, better enforcement of labour protections, and the introduction of unemployment insurance.
The policy brief further stressed the burden of rising energy costs on households, advocating improved electricity supply, reduced reliance on generators, and a more efficient tariff regime.
On transportation and housing, CPPE recommended increased investment in affordable mass transit and expanded access to affordable housing finance to ease pressure on workers’ incomes.
The group also underscored the importance of skills development, vocational training, and stronger public-private partnerships to enhance productivity and long-term earning capacity.
In addition, it called for tax reforms to improve disposable income, noting that workers’ welfare is ultimately determined by net earnings rather than gross wages.
To ensure sustainability, CPPE proposed institutionalising wage adjustment mechanisms such as inflation-linked pay reviews and cost-of-living adjustments, instead of irregular salary increases.
The organisation concluded that Nigeria must adopt a welfare-centric approach anchored on structural reforms, improved public service delivery, and stronger social protection systems to achieve lasting improvements in living standards and economic resilience.
