The Centre for the Promotion of Private Enterprise lamented on Sunday that investors in Nigeria remain dangerously exposed to harassment and service disruptions due to a lack of comprehensive legislation that could guarantee their rights or shield them from arbitrary regulatory decisions and unlawful shutdowns.
In a statement released by the CPPE Director and Chief Executive Officer, Dr. Muda Yusuf, the organization warned that persistent harassment and shutdowns of investment structures could lead to a loss of investor confidence, increased capital flight, a decline in foreign direct investment, and a contraction of domestic enterprises.
The CPPE statement detailed the sources of investor vulnerability: “Investors in Nigeria operate in an environment marked by uncertainty and institutional weakness. Key sources of vulnerability include: Weak legal protection; a growing culture of coercion, intimidation, and impunity among labour unions, resulting in industrial actions that are often out of proportion; Frequent policy reversals, inconsistent enforcement, and opaque regulatory processes raise business risks and discourage long-term investments; and cumbersome procedures, unauthorized enforcement actions, and protracted legal disputes create delays and uncertainty, undermining investor confidence and productivity.”
The CPPE concluded on the impact of these factors, stating: “Together, these factors erode Nigeria’s competitiveness, deter both local and foreign investment, and slow economic growth and job creation.”
On the economic implications, the CPPE stated that: “Investor vulnerability carries serious macroeconomic and social consequences. When investors lose confidence, capital flight intensifies, foreign direct investment declines, and domestic enterprises contract their operations. The resulting chain reaction includes job losses, declining tax revenues, and reduced economic growth.”
The organization also pointed to the damage caused by frequent strikes: “Unrestrained strikes in strategic sectors such as energy, transport, and health disrupt production, threaten national security, and endanger public welfare.”
The statement further noted: “Policy inconsistency and regulatory arbitrariness make long-term planning difficult, deepening Nigeria’s dependence on imports and weakening its industrial base. Without corrective reforms, these trends will continue to erode national competitiveness, discourage innovation, and diminish Nigeria’s economic resilience.”
The CPPE issued several key recommendations for corrective reforms, starting with legislation: “Nigeria should enact a dedicated Investor and Employer Protection Act to provide a strong legal foundation for safeguarding investors’ rights.”
This proposed Act should: “Codify the rights and obligations of investors, employers, regulators, and unions; Prohibit unlawful actions such as intimidation, coercion, unauthorized shutdowns, and harassment; Establish penalties, damages, and restitution mechanisms for violations.”
They also recommended strengthening the Industrial Arbitration Panel for faster, impartial resolution of industrial disputes, and creating an Independent Investment Ombudsman Office to handle investor complaints and mediate disputes involving government agencies.
Regarding incessant strike actions by labour unions, the CPPE explained the necessity of balancing rights: “Labour unions play a legitimate role in protecting workers, but their activities must align with the law and national interest.”
The recommended reforms included requiring Proportionality of industrial actions and Designation of strategic sectors — including energy, health, transport, and ICT — as essential services, where strikes are restricted or prohibited.
Other recommendations were the Introduction of compulsory arbitration in essential sectors to prevent economic paralysis and implementing Clear sanctions and restitution requirements for unlawful strikes that inflict damage on businesses and the economy.
Labour rights should end where those of employers begin. Investors should have as much rights to protect their investment as labour unions have the rights to protect the workers.
There is a need for a fair and equitable balance. Finally, the CPPE called for the Mandatory publication of audited union accounts and governance records to enhance transparency.
The CPPE concluded by stressing the importance of protecting the business environment: “Protecting investors and employers is not a privilege — it is a national economic imperative. Investors mobilize capital, create jobs, and generate the tax revenues that sustain government and society. Without them, there can be no sustained growth, no employment, and no national prosperity. Nigeria must, therefore, urgently institutionalize a fair, secure, and predictable business environment that protects those who take risks to create wealth. This is not about weakening labour unions, but about balancing rights and responsibilities — to foster sustainable economic growth, social stability, and national security.”
