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.
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 organisation stressed that rising costs of food, energy, and transportation are the biggest drivers of inflation, significantly weakening household purchasing power.
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.
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.
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.
