Nigerian workers would benefit from the Federal Government prioritising policies that reduce the cost of living and have more sustainable welfare gains than periodic wage increases, the Centre for the Promotion of Private Enterprise has stated.
The Chief Executive Officer of CPPE, Dr Muda Yusuf, in a policy brief on Thursday titled ‘Beyond Wage Increases: Reframing Labour Welfare Priorities in Nigeria’, noted that the current focus on wage negotiations amid inflationary pressures fails to address the root causes of declining living standards.
He said, “While wage adjustments are necessary and often justified, they are clearly insufficient as a standalone strategy for improving workers’ welfare. In an economy characterised by persistent inflationary pressures, structural bottlenecks, and weak public service delivery, nominal wage increases are frequently eroded within a short period.”
The think tank stressed that protecting real incomes, rather than nominal wage growth, should be the central objective of labour welfare policies, saying, “Rising food prices, transport fares, and housing costs remain the most immediate threats to workers’ welfare. Tackling these cost pressures will deliver more durable welfare gains than periodic wage increases.”
He called on labour unions to shift advocacy towards structural interventions that directly address these cost drivers.
“Labour advocacy should therefore prioritise structural interventions that address these cost drivers,” Yusuf remarked.
“This includes scaling up investment in mass transit systems to reduce commuting costs, policies to boost agricultural productivity and curb food inflation, measures to moderate rental pressures in urban centres, and the provision of subsidised staff canteens by medium and large enterprises as well as government institutions.”
The CPPE’s position comes days after the Nigeria Labour Congress warned that higher wages would remain ineffective without macroeconomic stability.
The NLC President, Joe Ajaero, had said, “Even if Nigerian workers earn N1m, it will not be meaningful if the naira has no value. What we are looking for is a currency that can sustain workers and their families at least to the end of the month.”
In its policy brief, CPPE highlighted multiple cost pressures eroding household incomes, including energy, healthcare, and housing expenses, and called for comprehensive reforms across key sectors.
Yusuf said, “Nigeria’s inflationary environment, driven largely by food, energy, and transportation costs, has significantly weakened real incomes. For most households, especially low- and middle-income earners, food and transport account for a dominant share of expenditure.”
The organisation also urged the government to strengthen public service delivery to ease the burden on workers.
“There is a compelling need to strengthen public service delivery in critical sectors such as healthcare, education, transportation, and power, as this would significantly reduce household expenditure burdens,” said Yusuf.
On transport and urban mobility, CPPE called for urgent investment in affordable mass transit systems and regulatory oversight to curb exploitative pricing.
It further recommended policies to boost agricultural productivity, expand affordable housing schemes, enforce pension compliance, and improve access to healthcare through wider insurance coverage.
Yusuf also pushed for the introduction of unemployment insurance and broader social safety nets to protect workers during economic shocks.
He said, “Nigeria’s current economic realities demand a fundamental rethink of labour welfare strategy. While wage increases remain important, they are clearly inadequate in isolation.”
He added, “A broader and more strategic focus on cost-of-living reduction, social protection, job security, and improved public service delivery will yield more meaningful and sustainable welfare outcomes.”
