The Centre for the Promotion of Private Enterprise (Centre for the Promotion of Private Enterprise) has urged the Federal Government to focus more on reducing the cost of living rather than relying mainly on periodic wage increases to improve workers’ welfare in Nigeria.
The Chief Executive Officer of the think tank, Muda Yusuf, made the recommendation in a policy brief titled “Beyond Wage Increases: Reframing Labour Welfare Priorities in Nigeria,” released on Thursday.
He argued that while wage adjustments are important, they do little to solve the deeper structural issues driving declining living standards, especially in an economy affected by inflation, weak infrastructure, and poor public service delivery.
According to him, repeated salary increases are quickly eroded by rising prices of food, transport, and housing, making them an ineffective long-term solution to workers’ welfare challenges.
Yusuf stressed that the real focus should be on protecting the purchasing power of workers rather than simply increasing nominal wages.
He explained that improving conditions in key areas such as food supply, transportation, housing, and public services would provide more lasting relief for workers than wage hikes alone.
The CPPE recommended major investments in mass transit systems to reduce transport costs, reforms to boost agricultural productivity and reduce food inflation, and policies to ease housing pressures in urban areas.
It also called on employers and government institutions to consider providing subsidised meals for workers in order to reduce daily living expenses.
The organisation noted that labour unions should shift their advocacy towards structural economic reforms that directly address the root causes of high living costs.
This position aligns with recent remarks by the Nigeria Labour Congress, whose President Joe Ajaero warned that wage increases alone are ineffective without broader economic stability and a stronger national currency.
CPPE further highlighted the need to improve healthcare, education, transportation, and electricity services to reduce the financial burden on households.
It also advocated for expanded social protection systems, including unemployment insurance, pension compliance enforcement, and wider health insurance coverage.
The organisation concluded that a comprehensive approach combining cost-of-living reduction, job security, and improved public services would deliver more sustainable welfare outcomes for Nigerian workers.
