The Centre for the Promotion of Private Enterprise (CPPE) has warned that increasing salaries alone will not improve the welfare of Nigerian workers, urging the government to focus on reducing the cost of living and fixing basic services.
In a policy brief issued Thursday, CPPE Chief Executive Officer, Dr Muda Yusuf, said the current focus on wage increases is too narrow and fails to address the real problems facing households.
He noted that in an economy marked by high inflation and weak public services, “nominal wage increases are frequently eroded within a short period,” leaving workers no better off.
Rising Costs Eating up Incomes
The group said rising prices of food, transport, energy and housing are the biggest threats to workers’ welfare, stressing that real incomes—not just salaries—should be the focus of policy.
According to Yusuf, most Nigerian households spend a large share of their income on food and transport, while high energy costs and poor access to healthcare continue to strain finances.
CPPE called for practical solutions such as improved mass transit to reduce commuting costs, policies to boost food production, and better housing systems to ease rent pressures.
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It also urged expansion of health insurance coverage to reduce out-of-pocket medical expenses, which it described as a major financial risk for workers.
Beyond this, the group highlighted growing job insecurity, warning that casual and contract work is weakening labour protection.
It said stronger regulation, better pension compliance, and improved working conditions are needed to protect workers.
Call for Broader Reforms Beyond Salaries
The think tank stressed that high electricity and fuel costs are putting pressure on both workers and businesses, calling for a more reliable power supply and lower energy costs.
It also raised concerns about weak social protection systems, urging the introduction of unemployment benefits and stronger safety nets.
On taxation, CPPE said workers’ welfare depends on what they take home, not just what they earn, calling for reforms that increase disposable income for low- and middle-income earners.
Yusuf said the country needs a shift from wage-focused policies to a broader welfare strategy that tackles structural problems.
He added that improving public services in areas like healthcare, transport, power and education would reduce household expenses and deliver more lasting benefits.
“Nigeria’s current economic realities demand a fundamental rethink of labour welfare strategy,” he said, warning that without deeper reforms, wage increases alone will not improve living standards or support long-term economic growth.
Alex is a business journalist cum data enthusiast with the Pinnacle Daily. He can be reached via ealex@thepinnacleng.com, @ehime_alex on X