CPPE urges shift from wage hikes to broader labour welfare reforms

THE Centre for the Promotion of Private Enterprise (CPPE) has called for a major rethink of labour welfare priorities in Nigeria, warning that wage increases alone are no longer sufficient to improve workers’ living standards.

In a policy brief released on Thursday and signed by Chief Executive Officer, Dr Muda Yusuf, the organisation said the national conversation on labour welfare has been overly focused on salary adjustments, despite persistent inflation and rising cost-of-living pressures that continue to erode real incomes.

The CPPE noted that while wage increases are often justified, they offer only temporary relief in an economy characterised by structural challenges, including inflation driven by food, energy, and transportation costs, as well as weak public service delivery.

According to the think tank, labour advocacy should shift from a narrow wage-centric approach to a more comprehensive welfare framework that addresses underlying cost drivers and improves access to essential services.

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The organisation emphasised that protecting real income, not just increasing nominal wages, should be the central objective of labour policy, particularly as households spend a significant portion of their earnings on food and transport.

To achieve this, the CPPE outlined several non-wage priorities, including measures to stabilise food prices, expand mass transit systems, and reduce housing costs in urban centres. It also highlighted the need for improved healthcare access through expanded insurance coverage and stricter enforcement of employer-provided health schemes.

On retirement security, the group called for stronger compliance with pension remittances and wider adoption of micro-pension schemes, especially for workers in the informal sector.

The CPPE further raised concerns over growing job insecurity, citing the rise of casual and contract employment, and urged labour unions to push for stronger protections and better enforcement of labour regulations.

“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,” it noted.

It also identified high energy costs and unreliable power supply as major pressures on household incomes, recommending reforms to improve electricity reliability and reduce dependence on generators.

In addition, the organisation stressed the importance of affordable housing, skills development, and stronger social protection systems, including unemployment insurance, to support workers during economic shocks.

The CPPE also advocated tax reforms to ease the burden on low- and middle-income earners and boost disposable income, alongside the introduction of structured wage adjustment mechanisms such as inflation-linked pay reviews.

The group urged the government to strengthen public service delivery in key sectors such as healthcare, education, transportation, and power, noting that improved services would significantly reduce household expenses.

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The CPPE added that Nigeria’s economic realities require a broader and more strategic approach to labour welfare, warning that reliance on wage increases alone will not deliver sustainable improvements in living standards.

“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.

“A comprehensive welfare framework anchored on structural reforms and strong institutions is imperative to improving workers’ quality of life and advancing inclusive economic growth.”