The Centre for the Promotion of Private Enterprise (CPPE) has advised the Federal Government to prioritise policies aimed at reducing the cost of living, rather than relying solely on wage increases to improve workers’ welfare.
The Chief Executive Officer of CPPE, Muda Yusuf, made the call in a policy statement released in Abuja, noting that while wage adjustments are often necessary, they do not provide lasting relief in an inflationary environment.
Yusuf explained that rising inflation continues to erode the purchasing power of workers, thereby diminishing the real value of salary increases within a short period.
“Wage increases, though important, are not sufficient on their own to address the welfare challenges facing Nigerian workers,” he said.
According to him, the focus of government policy should shift toward reducing the major cost drivers affecting households, including food prices, transportation, housing, and energy.
He stressed that addressing these structural challenges would have a more sustainable impact on citizens’ welfare than periodic wage reviews.
The CPPE boss called for increased investment in mass transit systems to reduce commuting costs and ease pressure on urban workers. He also advocated policies to boost agricultural productivity to curb rising food prices.
Yusuf further recommended measures to address rising rental costs, including incentives for affordable housing development, as well as support for employer-driven welfare initiatives such as subsidised staff meals.
He added that improving public service delivery in critical sectors such as healthcare, education, power, and transportation would significantly reduce the financial burden on households.
On social protection, CPPE urged the government to expand health insurance coverage, ensure effective pension administration, and consider unemployment insurance schemes to support vulnerable workers.
The organisation also raised concerns over job insecurity, highlighting the growing trend of casual and contract employment, and called for stronger labour protections.
CPPE noted that Nigeria’s current economic realities—characterised by high inflation and rising living costs—require a comprehensive policy response that goes beyond wage increases.
It maintained that protecting the real incomes of workers through cost-of-living reduction strategies and structural reforms would deliver more meaningful and lasting economic relief.
Background:
The call comes amid ongoing national discourse on wage adjustments as workers grapple with rising inflation and declining purchasing power across the country.
