CPPE Calls For Shift From Wage Rises To Broader Workers’ Welfare Reform

CPPE urges Nigeria to move beyond wage hikes, advocating reforms in healthcare, transport, energy, and job security to improve welfare.

The Centre for the Promotion of Private Enterprise (CPPE) has called for a fundamental shift in labour advocacy in Nigeria, from a narrow wage-centric approach to a broader and more holistic welfare framework.

The CPPE said that this repositioning would be more aligned with Nigeria’s economic realities and offers a more sustainable pathway to improving living standards, boosting productivity, and strengthening economic resilience.

It made this call on Thursday in a policy brief titled “Beyond Wage Increases: Reframing Labour Welfare Priorities in Nigeria.”It emphasised that the central objective of labour welfare policy in Nigeria should be the protection of real incomes, not merely nominal wage growth.

The CPPE strongly advocated a transition from wage-centric to welfare-centric labour engagement, with a focus on structural cost drivers and access to essential services.It said there is 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.

“In addition, policies that promote productivity in agriculture, energy, and logistics should be prioritised to support sustainable welfare gains.“Regulatory enforcement must be strengthened, particularly in areas of labourprotection, pension compliance, and workplace standards.“Finally, government should accelerate efforts to build robust and inclusive social protection systems,” it said.

The Chief Executive Officer of CPPE, Dr. Muda Yusuf, observed in the policy brief 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.Yusuf 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.“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 argued that “a comprehensive welfare framework anchored on structural reforms and strong institutions is imperative to improving workers’ quality of life and advancing inclusive economic growth.”

He pointed out that while wage adjustments are necessary and often justified, they are clearly insufficient as a standalone strategy for improving workers’ welfare.

According to him, nominal wage increases are frequently eroded within a short period in an economy that is characterised by persistent inflationary pressures, structural bottlenecks, and weak public service delivery.

Yusuf stated that public labour advocacy should prioritise structural interventions that address drivers of cost of living like food inflation, high transport costs, soaring energy prices, etc.

He said that these interventions should include scaling up investment in mass transit systems to reduce commuting costs and policies to boost agricultural productivity and curb food inflation.Other intervention, according to him, are 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,” Yusuf said.

He also identified excessively high out-of-pocket healthcare expenditure as one of the areas workers are exposed to significant financial risks.The CPPE, therefore, underscored the need for expanded coverage under the National Health Insurance Authority, with strict enforcement of employer-provided health insurance schemes, and strengthened occupational health and safety standards.

It said that “improved health security is critical not only for welfare but also for productivity.”Yusuf also said that the increasing prevalence of casualisation and contract employment has significantly weakened job security.He, therefore, urged labour unions to push for stronger regulatory frameworks, improved enforcement mechanisms, and robust redundancy protection systems.

He also called for provision of reliable electricity supply and a more transparent and efficient tariff regime to reduce workers’ dependence on self-generation of power.He said that lower energy costs will have a direct positive impact on disposable incomes.