The Centre for the Promotion of Private Enterprise (CPPE) has advised the Federal Government to prioritise policies that reduce the cost of living, arguing that such measures would deliver more sustainable benefits to Nigerian workers than periodic wage increases.
In a policy brief titled “Beyond Wage Increases: Reframing Labour Welfare Priorities in Nigeria,” CPPE’s Chief Executive Officer, Muda Yusuf, said the current focus on wage adjustments amid rising inflation fails to address the root causes of declining living standards.
He noted that while wage increases may be necessary, they are often quickly eroded in an economy marked by persistent inflation, structural bottlenecks, and weak public service delivery.
“Protecting real incomes, rather than nominal wage growth, should be the central objective of labour welfare policies,” Yusuf stated, highlighting rising food prices, transport fares, and housing costs as the most immediate threats to workers’ welfare.
The organisation called on labour unions to redirect their advocacy toward structural interventions that directly tackle these cost drivers. Suggested measures include increased investment in mass transit systems to lower commuting costs, policies to boost agricultural productivity and curb food inflation, and initiatives to moderate rising rents in urban centres.
CPPE also recommended subsidised staff canteens in medium and large organisations, alongside broader efforts to improve access to essential services.
The position aligns with concerns raised by the Nigeria Labour Congress, whose President, Joe Ajaero, recently warned that higher wages would remain ineffective without macroeconomic stability.
According to Ajaero, even significantly higher salaries would have little impact if the value of the naira continues to weaken, stressing the need for policies that ensure workers can meet their basic needs consistently.
CPPE further identified key cost pressures eroding household incomes, including energy, healthcare, and housing expenses. It urged the government to strengthen public service delivery in critical sectors such as healthcare, education, transportation, and power to ease financial burdens on citizens.
On urban mobility, the think tank emphasised the need for affordable and efficient mass transit systems, supported by regulatory oversight to prevent exploitative pricing.
Additional recommendations include expanding affordable housing schemes, enforcing pension compliance, improving access to healthcare through broader insurance coverage, and introducing unemployment insurance alongside stronger social safety nets.
Yusuf stressed that Nigeria’s current economic challenges require a fundamental rethink of labour welfare strategy, insisting that wage increases alone are insufficient.
“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,” he said.
