The Centre for the Promotion of Private Enterprise (CPPE) has called for a major shift in Nigeria’s labour welfare strategy, urging policymakers and labour unions to move beyond wage increases and adopt a broader, more sustainable framework focused on improving workers’ overall living conditions.
In a policy brief titled “Beyond Wage Increases: Reframing Labour Welfare Priorities in Nigeria,” the CPPE noted that labour discussions in the country have been largely dominated by wage negotiations, particularly amid rising inflation and cost-of-living pressures.
However, the organisation stressed that wage adjustments alone are insufficient, as inflation continues to erode real incomes within a short period.
The think tank explained that Nigeria’s current macroeconomic environment – characterised by high food, energy, and transportation costs – has significantly weakened purchasing power, especially among low- and middle-income earners.
It argued that labour welfare policies should prioritise protecting real incomes rather than focusing solely on nominal wage growth.
According to the CPPE, rising living costs remain the most immediate threat to workers’ welfare. It recommended structural interventions such as increased investment in mass transit systems, policies to boost agricultural productivity, and measures to address housing affordability in urban centres.
It also suggested that organisations provide subsidised staff canteens to ease workers’ financial burdens.
The policy brief highlighted the need for improved healthcare access, calling for expanded coverage under the National Health Insurance Authority and stricter enforcement of employer-provided health insurance schemes. It noted that high out-of-pocket medical expenses continue to expose workers to financial risks.
On retirement security, the CPPE raised concerns over weak pension compliance and urged stronger enforcement of remittances, alongside the expansion of micro-pension schemes for informal sector workers.
The organisation also expressed concern over growing job insecurity, citing the increasing prevalence of casual and contract employment. It called for stronger labour regulations, improved enforcement mechanisms, and the introduction of unemployment insurance schemes to protect workers.
Addressing energy challenges, the CPPE noted that high electricity tariffs and reliance on generators significantly increase household expenses. It recommended improving power supply reliability and ensuring a more transparent tariff regime to reduce costs.
The think tank further emphasised the importance of affordable housing, skills development, and stronger social protection systems. It advocated tax reforms to increase disposable income for low- and middle-income earners, as well as wage structure reforms such as inflation-linked adjustments and cost-of-living allowances.
In its recommendations, the CPPE urged a transition to a welfare-centric approach that tackles structural cost drivers and improves access to essential services, including healthcare, education, transportation, and power.
The Brief signed by CPPE CEO, Dr. Muda Yusuf, noted that while wage increases remain important, they are inadequate on their own, stressing that a comprehensive welfare framework anchored on structural reforms and effective institutions is critical to improving workers’ quality of life and promoting inclusive economic growth in Nigeria.
Comment here