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's Stance on Labour Welfare

CPPE stated that the current discourse on labour welfare in Nigeria is predominantly focused on wage increases, which it deems inadequate for addressing the real challenges faced by workers.

• The organization noted, “While wage adjustments are necessary… they are clearly insufficient as a standalone strategy.”
• CPPE emphasized that in an economy characterized by persistent inflationary pressures, nominal wage increases are frequently eroded within a short period.
• The CPPE calls for a fundamental shift towards 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.

Drivers of Inflation in Nigeria

CPPE explained that Nigeria’s inflation environment is largely driven by structural factors. These include high food prices, energy costs, and transport expenses, which collectively account for a significant share of household spending.