Nigeria’s workers are facing worsening living conditions as inflation continues to erode the value of wages.
The Centre for the Promotion of Private Enterprise (CPPE) has warned in a policy brief signed by its CEO, Dr Muda Yusuf, and sent to Nairametrics on Thursday.
The organisation said persistent price pressures across key sectors are undermining recent wage gains, leaving many households struggling to keep up with rising costs.
It added that the current focus on salary increases alone is insufficient to address the broader challenges affecting worker welfare.
CPPE’s position highlights growing concerns about real income decline in Nigeria, as inflation continues to outpace wage growth and expose structural weaknesses in the economy.
What the CPPE is saying
CPPE said the current labour welfare conversation in Nigeria is overly focused on wage increases, which it described as inadequate in addressing the real challenges facing workers.
- “The discourse on labour welfare in Nigeria has been largely dominated by wage negotiations… While wage adjustments are necessary… they are clearly insufficient as a standalone strategy.”
- “In an economy characterised by persistent inflationary pressures… nominal wage increases are frequently eroded within a short period.”
- “CPPE therefore calls for a fundamental shift… to a broader, more holistic welfare framework.”
- “The central objective of labour welfare policy should be the protection of real incomes, not merely nominal wage growth.”
The organisation stressed that rising costs of food, energy, and transportation are the biggest drivers of inflation, significantly weakening household purchasing power.
More Insights
CPPE explained that Nigeria’s inflation environment is largely driven by structural factors, particularly high food prices, energy costs, and transport expenses, which account for a large share of household spending.
- Food and transport costs remain the largest burden on low- and middle-income earners.
- Rising housing costs, healthcare expenses, and weak access to social services are further squeezing disposable incomes.
- Increasing casualisation of jobs and weak labour protections are worsening job security.
- Nigeria’s social protection system remains fragmented, offering limited safety nets for workers.
The group also highlighted additional concerns around high out-of-pocket healthcare costs, retirement insecurity, and expensive energy alternatives such as generator use, all of which continue to compound financial pressures on households.
What you should know
In July 2024, President Bola Tinubu approved a N70,000 minimum wage for Nigerian workers with a promise to review the national minimum wage law every three years.
The leaders of organised labour had earlier met with President Tinubu on Thursday, July 11, at the presidential villa over the proposal of a new minimum wage.
Following their arrival, both parties had an hour-long meeting over the new minimum wage.
Nairametrics reported that the Nigeria Labour Congress (NLC) had vowed to launch a renewed push for the enforcement of the N70,000 National Minimum Wage, warning that non-compliant state governments and private sector employers will face organised resistance.
