CPPE urges Nigeria to move beyond minimum wage toward a ‘welfare-centric’ labor policy

Dr. Muda Yusuf of CPPE argues that Nigeria must move beyond minimum wage hikes to structural welfare reforms in housing, transport, and health.

By: AXL Media

Published: Apr 30, 2026, 11:26 AM EDT

Source: Information for this report was sourced from LEADERSHIP Media Group.

The Limits of Nominal Wage Increases

As Nigeria continues to grapple with persistent inflationary pressures, the Centre for the Promotion of Private Enterprise (CPPE) is advocating for a strategic pivot in how the government and labor unions approach worker compensation. Dr. Muda Yusuf, the CEO of CPPE, stated on April 30 that focusing solely on nominal wage adjustments is insufficient. He noted that in the current economic climate—characterized by soaring food, energy, and transport costs—traditional pay raises quickly lose their purchasing power, failing to provide long-term relief for low- and middle-income households.

Transitioning to a Welfare-Centric Model

The CPPE’s proposed "welfare-centric" model emphasizes the reduction of household expenditure burdens through improved public service delivery. Rather than just negotiating a higher minimum wage, the Centre suggests that labor advocacy should prioritize government interventions in essential sectors. Key areas of focus include:

Mass Transit: Significant investment in accessible, efficient transportation to protect workers from unpredictable and often exploitative commuting costs.

Health and Retirement Security: Strengthening social safety nets to ensure workers have access to affordable healthcare and reliable pension schemes in both the formal and informal sectors.