Nigeria’s workers are grappling with worsening living standards as inflation continues to erode the real value of wages.

This was contained in a policy brief by the Centre for the Promotion of Private Enterprise, signed by its Chief Executive Officer, Dr Muda Yusuf, and released on Thursday, according to Nairameteics.

The group noted that sustained price increases across major sectors are offsetting recent wage adjustments, leaving many households under pressure as they struggle to cope with rising living costs.

It further noted that relying solely on salary increases is not enough to resolve the wider issues affecting workers’ welfare.

The CPPE’s position underscores rising concerns over declining real incomes in Nigeria, as persistent inflation continues to outstrip wage growth and reveal deeper structural weaknesses in the economy.

The CPPE stated that Nigeria’s ongoing labour welfare debate is too narrowly centred on wage increases, which it described as insufficient to address the deeper challenges confronting workers.

“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.

“In an economy characterised by persistent inflationary pressures… nominal wage increases are frequently eroded within a short period.

“CPPE therefore calls for a fundamental shift… to 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,” CPPE stated.

The organisation said that surging costs of food, energy, and transportation remain the primary drivers of inflation, sharply reducing household purchasing power.

It further explained that Nigeria’s inflationary pressures are largely structural in nature, with elevated food prices, energy costs, and transport expenses accounting for a significant share of household spending.

Food and transport costs continue to account for the largest share of spending pressure on low- and middle-income earners.

Rising housing and healthcare costs, combined with limited access to social services, are further eroding disposable incomes.

At the same time, growing job casualisation and weak labour protections are increasing employment insecurity across the labour market.

Nigeria’s social protection framework also remains fragmented, providing only limited safety nets for vulnerable workers.

In July 2024, President Bola Tinubu approved a new national minimum wage of ₦70,000 for Nigerian workers, alongside a commitment to review the minimum wage law every three years.

The approval followed a meeting with leaders of organised labour on Thursday, July 11, at the Presidential Villa, where discussions were held on the proposed wage adjustment.