Nigeria’s fragile investment climate has come under fresh scrutiny as the Centre for the Promotion of Private Enterprise (CPPE) called for an urgent legal and policy overhaul to protect investors and employers from what it describes as “systemic vulnerabilities” that have crippled business confidence and slowed private-sector growth.
In a detailed policy brief sent to Nairametrics on Sunday, Muda Yusuf, the director and chief executive officer of CPPE, argued that the Nigerian economy cannot achieve sustainable growth unless the government creates a more predictable and secure business environment—one that balances the rights of workers with those who take the risks of investment and job creation.
Yusuf, a former director-general of the Lagos Chamber of Commerce and Industry (LCCI), said investors and employers form the “lifeblood of every modern economy” by mobilizing capital, creating jobs, generating tax revenues, and driving innovation. Yet, he lamented, the Nigerian system fails to protect them adequately, even though labor laws strongly favor employees.
“The rights and investments of these economic actors remain inadequately protected,” Yusuf said. “This imbalance undermines investor confidence and leaves those who create jobs vulnerable to disruptions—particularly from industrial actions by labor unions.”
Labor Strikes and Regulatory Excesses Deepen Investor Anxiety
Nigeria has witnessed a surge in industrial actions in recent years, with unions across strategic sectors frequently downing tools over wages, fuel price increases, and policy disputes. Strikes by electricity workers have left parts of the country in darkness, while health sector stoppages have crippled hospitals and endangered patients. Aviation and transport shutdowns, caused by strikes by unions such as Petroleum and Natural Gas Senior Staff Association of Nigeria (PANGASSAN), have also disrupted economic activity and raised the cost of doing business.
Yusuf warned that these frequent disruptions, coupled with erratic regulations and bureaucratic bottlenecks, have made Nigeria increasingly unattractive to both local and foreign investors. He said this uncertainty, in turn, fuels capital flight and discourages long-term planning.
“When investors lose confidence, capital flight intensifies, foreign direct investment declines, and domestic enterprises contract their operations,” he said. “The resulting chain reaction includes job losses, declining tax revenues, and reduced economic growth.”
He added that unrestrained strikes in key sectors such as energy, transport, and health do not only hurt businesses but also threaten national security and public welfare.
Call for a New Legal Framework
To address these issues, CPPE has proposed the enactment of an Investor and Employer Protection Act, a comprehensive law that would clearly define the rights and obligations of all parties—investors, employers, regulators, and labor unions.
The law, according to Yusuf, should prohibit coercion, intimidation, and unlawful shutdowns, while setting penalties and restitution mechanisms for violations. It should also introduce a system of accountability for regulatory agencies, which businesses say often wield arbitrary powers without consequence.
Other Nigerians have noted that some regulatory institutions exercise excessive powers, sometimes beyond the limits of their mandates, creating fear and uncertainty in the private sector, thus they support the call for predictability and the rule of law in economic governance.
Yusuf also recommended strengthening the Industrial Arbitration Panel (IAP) to ensure faster and impartial resolution of industrial disputes, which often drag for years. Additionally, he called for the creation of an independent investment ombudsman office to mediate complaints involving government agencies and private investors, citing the need for transparency and fairness in public–private interactions.
While acknowledging that labor unions play a legitimate role in defending workers’ rights, Yusuf insisted that their actions must operate within the boundaries of the law and the national interest. He suggested that strikes in strategic sectors such as energy, health, transport, and ICT should be restricted or subjected to compulsory arbitration before any industrial action is declared.
“Labor rights should end where those of employers begin,” he said. “Investors should have as much rights to protect their investment as labor unions have the rights to protect workers. There is a need for a fair and equitable balance.”
The CPPE’s position reflects growing frustration within Nigeria’s private sector, which has struggled under multiple headwinds — high inflation, currency depreciation, energy shortages, and mounting regulatory uncertainty. Many manufacturers, especially in the real sector, have been forced to shut down or relocate production outside Nigeria in search of stability.
Restoring Confidence in the Private Sector
Yusuf argued that protecting investors and employers is not a privilege but a national economic necessity. Without a framework that guarantees fairness and predictability, he warned, the economy risks continued contraction and loss of productive capacity.
“Protecting investors and employers is not a privilege — it is a national economic imperative,” he said. “Without them, there can be no sustained growth, no employment, and no national prosperity.”
The economist urged policymakers to take immediate steps to strengthen the legal environment for enterprise, saying that Nigeria’s recovery from its current economic turbulence depends largely on how well it treats those who drive its productivity.
“Creating a fair, secure, and predictable business environment that safeguards those who take risks to create wealth is the surest way to rebuild investor confidence and accelerate growth,” Yusuf said.
His remarks follow a recent faceoff between PANGASSAN and Dangote Refinery, over the company’s decision to sack workers who attempted to join the union. The faceoff, which resulted in a strike by the union and an attempt to shut down the refinery, has led to a nationwide shortage of cooking gas.