Group urges shift to cost-of-living, healthcare, housing and social protection policies to improve real incomes…
The Centre for the Promotion of Private Enterprise has called for a major shift in labour policy, warning that wage increases alone are insufficient to improve workers’ welfare amid persistent inflation and rising living costs.
In a statement signed by its Chief Executive Officer, Muda Yusuf, the group said Nigeria’s labour discourse has been overly focused on wage negotiations, despite structural economic challenges that continue to erode real incomes.
CPPE noted that while wage adjustments remain necessary, they are often quickly undermined by inflation driven by food, energy and transportation costs. It argued that the primary goal of labour policy should be protecting real incomes rather than simply increasing nominal wages.
According to the group, households particularly low- and middle-income earners are under growing pressure as essential expenses such as food, transport, housing and energy consume a large share of income.
To address these challenges, CPPE proposed a broader welfare-focused approach anchored on structural reforms across key sectors.
The group identified rising cost of living as a major concern, urging investments in mass transit systems to reduce commuting expenses, policies to boost agricultural productivity to curb food inflation, and measures to moderate housing costs in urban areas. It also encouraged organisations to provide subsidised staff welfare services such as canteens.
On healthcare, CPPE called for expanded coverage under the National Health Insurance Authority, stronger enforcement of employer-provided health insurance and improved occupational safety standards to reduce the financial burden of medical expenses on workers.
The group also highlighted concerns over pension security, stressing the need for stricter enforcement of pension remittances, expansion of micro-pension schemes for informal workers and sanctions for defaulting employers.
In the labour market, CPPE pointed to the growing prevalence of contract and casual employment, which it said has weakened job security. It called for stronger regulatory frameworks, better enforcement of labour laws and the introduction of unemployment insurance to protect workers.
Energy costs were also identified as a major pressure point, with CPPE urging improvements in electricity supply and a more transparent tariff regime to reduce reliance on expensive self-generation.
On transportation, the group emphasised the need for efficient and affordable public transit systems, alongside regulatory oversight to prevent exploitative pricing practices. It also encouraged employers to provide staff transportation where possible.
Housing affordability remains another critical issue, according to CPPE, which called for expanded affordable housing programmes and reforms to mortgage financing to ease the burden on workers.
The group further stressed the importance of skills development and vocational training to enhance earning capacity, noting that long-term welfare improvements depend on productivity and income growth.
It also highlighted gaps in Nigeria’s social protection system, advocating the introduction of unemployment insurance and expansion of targeted safety net programmes to support workers during economic shocks.
On taxation, CPPE said workers’ welfare is ultimately determined by disposable income, calling for reforms to reduce the tax burden on low- and middle-income earners.
The group recommended the introduction of structured wage review mechanisms, including inflation-linked adjustments and cost-of-living allowances, to provide more predictable and sustainable income protection.
CPPE concluded that Nigeria needs to move beyond a wage-centric approach to a more comprehensive welfare framework that addresses structural cost drivers, strengthens public service delivery and enhances social protection.
It warned that without such reforms, wage increases alone would continue to offer only temporary relief, while households and businesses face ongoing economic pressures.
