CPPE says Nigeria needs investors, employers’ protection framework to restore confidence

The Centre for the Promotion of Private Enterprise (CPPE) has called on the Nigerian government to create a comprehensive legal and policy framework to protect investors and employers, warning that the absence of such safeguards is undermining confidence, weakening industrial productivity, and deterring long-term capital inflows.

Muda Yusuf, Director and Chief Executive Officer of CPPE in its latest policy brief titled “Protecting Investors and Employers: A National Policy Imperative,” CPPE said Nigeria’s economy cannot thrive if those who take risks, mobilise capital, and create jobs remain exposed to arbitrary regulatory actions, frequent policy reversals, and unrestrained labour union disruptions.

Yusuf said “Investors, entrepreneurs, and employers are the lifeblood of every modern economy. Yet, in Nigeria, their rights and investments remain inadequately protected.”

Yusuf highlighted that while workers enjoy strong legal protection, there is no equivalent institutional safeguard for employers and investors, adding that this imbalance has left the real sector—particularly manufacturing—vulnerable to strikes, coercion, and costly disruptions.

“A growing culture of coercion, intimidation, and impunity among labour unions, resulting in industrial actions that are often out of proportion. These frequently escalate into large-scale disruptions that paralyze production, inflict huge financial losses, and undermine national economic stability.  There is a growing and disturbing incidence of incredibly disproportionate industrial actions,” he added.

According to him, “frequent policy reversals, inconsistent enforcement, and opaque regulatory processes raise business risks and discourage long-term investments. Bureaucratic bottlenecks and weak dispute resolution: Cumbersome procedures, unauthorized enforcement actions, and protracted legal disputes create delays and uncertainty, undermining investor confidence and productivity. Together, these factors erode Nigeria’s competitiveness, deter both local and foreign investment, and slow economic growth and job creation.”

He warned that 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.

He lamented that unrestrained strikes in strategic sectors such as energy, transport, and health disrupt production, threaten national security, and endanger public welfare, while policy inconsistency and regulatory arbitrariness make long-term planning difficult, deepening Nigeria’s dependence on imports and weakening its industrial base.

Without corrective reforms, he stressed that these trends will continue to erode national competitiveness, discourage innovation, and diminish Nigeria’s economic resilience.

To correct this imbalance, CPPE recommended the enactment of an Investor and Employer Protection Act to codify the rights and obligations of regulators, unions, and employers, while prohibiting intimidation, unauthorised shutdowns, and harassment.

The proposed law would also create penalties, restitution mechanisms, and strengthen the Industrial Arbitration Panel (IAP) should be strengthened for faster, impartial resolution of industrial disputes.

The group further proposed establishing an ‘Independent Investment Ombudsman’ to handle complaints against government agencies and mediate disputes.

It also urged reforms to guarantee regulatory stability, including Investor Impact Assessments before major policy changes, a five-year rolling regulatory roadmap, and clear limits on the powers of agencies to prevent abuse.

Yusuf said labour unions play a legitimate role in defending workers’ rights but insisted their actions must align with the law and national interest.

He maintained that “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.”

He mulled that essential sectors like energy, transport, and health be designated as strategic, with compulsory arbitration mechanisms where strikes are restricted or prohibited. to prevent economic paralysis.

Yusuf urged for mandatory publication of audited union accounts and governance records to enhance transparency.

Long-term investments require predictability, adding that Government should therefore: Conduct Investor Impact Assessments prior to major policy or regulatory changes; Adopt a no-retroactivity rule, ensuring that new laws or policies do not unfairly penalize existing investors; Publish a rolling five-year policy roadmap outlining key priorities and regulatory direction — one that transcends political cycles to give investors clarity and stability; The limits of regulatory powers should be clearly defined.  Such powers should not be absolute. Regulatory agencies should be the accuser, jury and the judge.

He acknowledged that investor–government interactions must be governed by transparency and due process.

Accordingly, he urged the government to establish protocols that prevent arbitrary shutdowns or reputational damage to businesses without lawful authorization; Digitize all licensing, permitting, and compliance procedures to minimize discretion, reduce corruption risks, and shorten approval timelines; Mandate inter-agency coordination to prevent overlapping or conflicting directives affecting investors.

Other enforcement and governance mechanisms, he stated is to uphold investor rights and ensure accountability: Create a Business Rights Tribunal to handle investor protection cases swiftly; Launch a Public Transparency Dashboard to monitor industrial actions, regulatory decisions, and investor grievances in real time; Publish periodic Investor Protection Reports assessing government and union compliance with established standards.

He declared that the expected outcomes on implementation of this framework will restore investor confidence and attract both domestic and foreign capital; Stimulate private-sector job creation and expand fiscal revenues; Reduce strike-related disruptions in critical sectors; Promote transparency, due process, and accountability in government–business relations as well as strengthen Nigeria’s overall competitiveness, industrial productivity, and economic resilience.

He pointed out that protecting investors and employers is not a privilege — it is a national economic imperative, noting that investors mobilize capital, create jobs, and generate the tax revenues that sustain government, society, and without them, there can be no sustained growth, no employment, and no national prosperity.

Nigeria must, therefore, he said, urgently institutionalize a fair, secure, and predictable business environment that protects those who take risks to create wealth., adding that this is not about weakening labour unions, but about balancing rights and responsibilities — to foster sustainable economic growth, social stability, and national security.