Investors in Nigeria are confronting serious challenges, including harassment and disruptions to essential services, warns the Centre for the Promotion of Private Enterprise (CPPE).
In a new policy brief titled “Protecting Investors and Employers: A National Policy Imperative,” CPPE’s Chief Executive Officer, Dr. Muda Yusuf, argues that the country lacks a strong legal framework to shield investors and employers from arbitrary actions by regulatory bodies, labour unions, and government agencies
While Nigeria has many laws protecting workers and employees, “there is no comprehensive framework that protects the interests of investors and employers”, Yusuf says. He warns that this imbalance undermines investor confidence and leaves job creators vulnerable to regulatory overreach and industrial actions.
CPPE identifies four major vulnerabilities for investors:
- Weak legal protection,
- Unrestrained union action,
- Regulatory unpredictability, and
- Bureaucratic bottlenecks and poor dispute resolution.
These combined pressures, the brief argues, discourage investment, erode competitiveness, and slow the pace of economic growth. It warns of severe consequences if reforms are not implemented, including increased capital flight, declining foreign direct investment, job losses, and shrinking tax revenue.
CPPE also raises concerns over “intimidation, coercion, unauthorised shutdowns, and harassment” of businesses by unions and regulators. To address these issues, the centre recommends several reforms:
- Enact an Investor and Employer Protection Act that clearly defines roles and responsibilities and establishes penalties for violations.
- Strengthen the Industrial Arbitration Panel to ensure faster, fair resolution of industrial disputes.
- Create an Independent Investment Ombudsman Office to mediate between investors and government agencies.
- Insist that industrial actions in essential sectors (like health, transport, energy, ICT) be restricted or subject to compulsory arbitration.
- Require mandatory publication of audited union accounts to drive transparency.
- Adopt no retroactive laws, publish a rolling five-year policy roadmap, and mandate investor impact assessments before major regulatory shifts.
Yusuf insists this push is not about weakening labour unions, but about finding balance: “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.”
He concludes that protecting investors and employers is not a privileg. It is essential for inclusive growth, job creation, and long‑term national prosperity.
