Nigerian workers are facing worsening living standards as rising inflation continues to erode the value of their earnings, the Centre for the Promotion of Private Enterprise (CPPE) has warned.
In a policy brief signed by Muda Yusuf, its Chief Executive Officer, the organisation said persistent increases in the cost of living are undermining recent wage adjustments and placing households under growing financial pressure.
According to CPPE, the current focus on salary increases is not enough to address the broader economic challenges confronting workers. While wage reviews remain important, the group stressed that they cannot keep pace with inflation, which continues to outstrip income growth.
“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,” the report stated. It added that in an inflation-driven economy, wage increases are quickly eroded, leaving workers with little real improvement in purchasing power.
The organisation called for a shift in policy direction, urging authorities to focus on protecting real incomes rather than just increasing nominal wages. It emphasised that the goal of labour policy should be to ensure that workers can afford basic needs despite rising prices.
CPPE identified food, energy, and transportation costs as the main drivers of inflation, noting that these expenses account for a significant share of household spending. As a result, low- and middle-income earners are the most affected.
The report also highlighted additional pressures on households, including rising housing and healthcare costs, weak access to social services, and growing job insecurity. It warned that the increasing casualisation of labour and limited social protection systems are further worsening workers’ vulnerability.
Beyond this, CPPE pointed to high out-of-pocket medical expenses, uncertainty around retirement, and the rising cost of alternative energy sources, such as generators, as factors compounding financial strain on families.
The warning comes despite recent efforts to improve wages. In July 2024, President Bola Tinubu approved a new national minimum wage of ₦70,000, with a commitment to review it every three years.
However, labour tensions remain. The Nigeria Labour Congress (NLC) has vowed to push for full implementation of the new wage, warning that non-compliant employers and state governments could face organised resistance.
CPPE’s latest intervention underscores a deeper concern: without tackling inflation and structural economic challenges, wage increases alone may do little to improve the real living conditions of Nigerian workers.
