By Seun Ibiyemi
The Centre for the Promotion of Private Enterprise (CPPE) has warned that wage increases alone are no longer enough to protect Nigerian workers from worsening economic hardship, urging a broader welfare strategy to address the country’s rising cost of living.
In a policy brief titled “Beyond Wage Increases: Reframing Labour Welfare Priorities in Nigeria,” CPPE said labour welfare debates in Nigeria have remained too focused on salary increases despite persistent inflation, weak public services, and structural economic challenges.
The organisation noted that while wage reviews are necessary, they are often quickly wiped out by rising food prices, transport fares, energy costs, housing expenses, and poor access to affordable healthcare and social services.
According to CPPE, the focus of labour welfare policy should shift from nominal wage growth to the protection of workers’ real incomes and purchasing power.
The Chief Executive Officer of CPPE, Dr. Muda Yusuf, said Nigeria’s inflationary environment, largely driven by food, transportation, and energy costs has significantly reduced the living standards of low- and middle-income earners.
He said labour advocacy must move beyond a wage-centred approach and embrace a broader welfare framework that addresses the structural causes of workers’ hardship.
CPPE identified rising food prices, transport costs, and housing expenses as the most immediate threats to workers’ welfare and called for urgent government intervention through mass transit investments, improved agricultural productivity, food inflation control measures, and policies to reduce urban rental pressures.
The organisation also recommended subsidised staff canteens by medium and large enterprises as well as government institutions to ease the burden on workers.
On healthcare, CPPE stressed the need for expanded coverage under the National Health Insurance Authority, strict enforcement of employer-backed health insurance, and stronger workplace health and safety standards.
It also called for improved pension security through stronger pension remittance compliance, expansion of micro-pension schemes for informal workers, and tougher sanctions for defaulting employers.
The policy brief further raised concerns over the growing trend of casualisation and contract employment, warning that job insecurity continues to weaken labour protection and economic stability for workers.
CPPE urged labour unions to demand stronger labour laws, better enforcement mechanisms, and unemployment insurance systems to protect workers during economic shocks.
The think tank also pointed to rising electricity tariffs and generator fuel costs as major financial pressures on households, saying improved power supply and reduced dependence on self-generation would significantly improve disposable income.
It advocated affordable housing schemes, reforms in mortgage financing, tax relief for low- and middle-income earners, stronger social protection systems, and continuous skills development to improve long-term earning capacity.
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Rather than irregular and reactive salary increases, CPPE proposed inflation-linked wage adjustments, periodic cost-of-living adjustments, and more transparent wage review systems to protect workers from inflation shocks.
The organisation maintained that improving public service delivery in healthcare, education, transportation, and electricity would significantly reduce household expenses and deliver more lasting welfare gains than salary reviews alone.
CPPE concluded that Nigeria’s economic realities require a complete rethink of labour welfare policy, insisting that a comprehensive welfare strategy built on structural reforms and stronger institutions is the only sustainable path to improving workers’ quality of life.
