CPPE calls for reviewed welfare framework for workers

The Centre for the Promotion of Private Enterprise (CPPE) has called for a shift in from increasing nominal wages to reviewing the welfare framework for workers.

In a policy brief released on April 30, 2026, the Director General of the CPPE, Dr. Muda Yusuf, argued that the persistent inflationary environment in Nigeria frequently erodes the value of wage adjustments, making them an insufficient standalone strategy for improving the living standards of workers.

The center noted that Nigeria’s current macroeconomic landscape, characterized by escalating food, energy, and transportation costs, has significantly weakened the real income of households.

According to the CPPE, the central objective of labor policy should be the protection of real purchasing power rather than episodic nominal growth.

The brief emphasizes that for low- and middle-income earners, structural bottlenecks and weak public service delivery are the primary drivers of economic hardship.

To address these challenges, the CPPE identified several non-wage priorities that require urgent attention from both the government and labor unions.

The organization stressed that tackling price stability in food and transport would deliver more durable welfare gains than periodic salary reviews.

Recommendations include scaling up investments in mass transit systems, implementing policies to boost agricultural productivity, and encouraging large enterprises to provide subsidized staff canteens and transportation.

The policy brief further highlighted the critical role of social protections, such as expanded healthcare access under the National Health Insurance Authority and the enforcement of pension remittances.

Dr. Yusuf noted that out-of-pocket healthcare expenditures and retirement insecurity remain major threats to the financial stability of the Nigerian workforce.

The CPPE also called for a crackdown on the casualization of labor to improve job security and urged the government to implement unemployment insurance schemes to protect workers during economic shocks.

Energy costs were also flagged as a major burden on disposable income. The center advocated for a more transparent tariff regime and improved electricity supply to reduce the heavy reliance on expensive self-generation.

The Policy think-thank further suggested that the government should reform the tax system to provide relief for low-income earners, effectively increasing net take-home pay without necessarily raising gross wages.

The CPPE also recommended the institutionalization of inflation-linked wage adjustments and periodic cost-of-living adjustments to replace reactive negotiations.

The center maintained that a comprehensive framework anchored on structural reforms, improved public services, and strong regulatory enforcement is the only sustainable pathway to advancing inclusive economic growth and enhancing the quality of life for Nigerian workers.