The Centre for the Promotion of Private Enterprise (CPPE) has observed that the discourse on labour welfare in Nigeria has been largely dominated by wage negotiations, particularly against the backdrop of rising inflation and escalating cost-of-living pressures.

The CPPE noted that 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.

However, the CPPE therefore calls for a fundamental shift in labour advocacy—from a narrow wage-centric approach to a broader, more holistic welfare framework. This repositioning is more aligned with Nigeria’s economic realities and offers a more sustainable pathway to improving living standards, boosting productivity, and strengthening economic resilience.

The Chief Executive Officer (CEO) of CPPE, Dr Muda Yusuf, stated this in a press release titled: Beyond Wage Increases: Reframing Labour Welfare Priorities in Nigeria, made available to the media in Lagos yesterday, that Nigeria’s current economic realities demand a fundamental rethink of labour welfare strategy.

He pointed out that while wage increases remain important, they are clearly inadequate in isolation.

In addition, Yusuf explained that 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.

To him, a comprehensive welfare framework anchored on structural reforms and strong institutions is imperative to improving workers’ quality of life and advancing inclusive economic growth.

Talking about the country’s macroeconomic context, the CPPE boss stressed, “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. In addition, rising energy costs, housing pressures, and limited access to affordable social services continue to compress disposable incomes.

“In this context, CPPE emphasises that the central objective of labour welfare policy should be the protection of real incomes, not merely nominal wage growth.”

While speaking on the key non-wage welfare priorities, Yusuf noted; Cost of Living and Price Stability: “Rising food prices, transport fares, and housing costs remain the most immediate threats to workers’ welfare. Labour advocacy should therefore prioritise structural interventions that address these cost drivers.

“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.

“Tackling these cost pressures will deliver more durable welfare gains than periodic wage increases.”

Healthcare Access and Financial Protection: “Out-of-pocket healthcare expenditure remains excessively high, exposing workers to significant financial risks. CPPE underscores the need for expanded coverage under the National Health Insurance Authority, strict enforcement of employer-provided health insurance schemes, and strengthened occupational health and safety standards. Improved health security is critical not only for welfare but also for productivity.”

Pension Security and Retirement Protection; Retirement insecurity continues to pose a major concern across both formal and informal sectors. Labour advocacy should focus on ensuring stronger compliance with pension remittances, expanding micro-pension schemes for informal workers, and enforcing sanctions against defaulting employers. A credible and efficient pension system is essential for long-term welfare sustainability.

Job Security and Labour Market Conditions: “The increasing prevalence of casualisation and contract employment has significantly weakened job security. Many workers face unstable employment conditions, weak labour protection enforcement, and the absence of unemployment insurance. CPPE urges labour unions to push for stronger regulatory frameworks, improved enforcement mechanisms, and robust redundancy protection systems.”

Energy Costs and Power Supply: “Energy costs—covering both electricity tariffs and generator fuel—constitute a major burden on workers and households. Addressing this requires improved electricity supply reliability, reduced dependence on self-generation, and a more transparent and efficient tariff regime. Lower energy costs will have a direct positive impact on disposable incomes.”