The Centre for the Promotion of Private Enterprise (CPPE) has called on the Federal Government to develop a comprehensive national policy and legal framework to protect investors and employers from arbitrary actions by regulators, labour unions, and government agencies.
The organisation warned that without urgent reforms, Nigeria’s business environment will remain unstable, discouraging both local and foreign investment and threatening economic competitiveness.
In a new policy brief titled “Protecting Investors and Employers: A National Policy Imperative,” CPPE’s Chief Executive Officer, Dr Muda Yusuf, lamented that while there are extensive laws protecting workers and employees in Nigeria, there is no equivalent framework safeguarding the rights and interests of investors and employers who mobilise capital, create jobs, generate tax revenues, and drive innovation.
Yusuf said the lack of a balanced framework has left investors and employers vulnerable to regulatory overreach, arbitrary sanctions, and excessive labour actions that frequently paralyse business operations and undermine national productivity.
He noted that the situation is particularly severe in the real sector, where enterprises face high fixed costs, significant sunk investments, and large workforces.
“Investors, entrepreneurs, and employers are the lifeblood of every modern economy. Yet, in Nigeria, their rights and investments remain inadequately protected,” he stated.
“There is an urgent need for a fair, predictable, and secure environment that protects those who create jobs while ensuring that industrial relations are governed by law, due process, and mutual respect.”
According to the CPPE, investors in Nigeria operate under difficult conditions characterised by weak legal protection, regulatory uncertainty, and bureaucratic bottlenecks.
Frequent policy reversals, inconsistent enforcement, and opaque administrative procedures, it said, raise business risks and discourage long-term investment.
The organisation also drew attention to the growing incidence of disproportionate industrial actions in strategic sectors such as energy, transport, and healthcare, which often lead to nationwide disruptions, massive financial losses, and erosion of investor confidence.
The CPPE observed that such instability has broader macroeconomic and social consequences, including capital flight, declining foreign direct investment, factory closures, and job losses.
It warned that unless corrective measures are taken, Nigeria’s industrial base will continue to weaken, leading to greater dependence on imports and slower economic growth.
“Unrestrained strikes and regulatory arbitrariness make long-term planning difficult, deepen uncertainty, and threaten national security,” Yusuf added. “The result is a fragile economy that struggles to attract and retain investment.”
To address these challenges, the CPPE proposed the enactment of an Investor and Employer Protection Act that would define the rights and responsibilities of investors, employers, regulators, and labour unions.
The proposed law, Yusuf said, should prohibit intimidation, coercion, unauthorized shutdowns, and harassment, while also providing clear restitution mechanisms and penalties for violations.
He suggested strengthening the Industrial Arbitration Panel to enable faster, impartial dispute resolution and the creation of an Independent Investment Ombudsman Office to mediate conflicts involving investors and government agencies.
The organisation further recommended that government conduct investor impact assessments before introducing major policy or regulatory changes, adopt a no-retroactivity rule to prevent new laws from unfairly penalising existing investors, and publish a rolling five-year policy roadmap that gives businesses clarity and predictability beyond political cycles.
Yusuf also called for the definition of clear limits to regulatory powers to prevent arbitrary sanctions and ensure accountability.
While recognising the legitimate role of labour unions, CPPE insisted that their actions must align with the law and national interest.
It urged the adoption of proportionality in industrial actions and the restriction or compulsory arbitration of strikes in essential sectors such as energy, health, transport, and ICT to prevent economic paralysis.
The centre further recommended mandatory disclosure of audited union accounts to enhance transparency and accountability.
“Labour rights should end where those of employers begin,” Yusuf said.
“Investors should have as much right to protect their investments as unions have to protect workers. There must be a fair and equitable balance.”
The CPPE also proposed the establishment of a Business Rights Tribunal to handle investor protection cases promptly and a Public Transparency Dashboard to track industrial actions, regulatory decisions, and investor grievances in real time.
According to the organisation, effective implementation of these reforms would help rebuild investor confidence, attract more domestic and foreign capital, stimulate job creation, and enhance industrial productivity and national competitiveness.
Yusuf stressed that protecting investors and employers is not a privilege but a national economic necessity.
Without investors, he said, there can be no sustained growth, employment, or prosperity.
“This is not about weakening labour unions but about balancing rights and responsibilities to foster sustainable growth, social stability, and national security,” he concluded.
The CPPE urged the government to act decisively to institutionalise a fair, transparent, and predictable business environment that safeguards those who take risks to create wealth and drive Nigeria’s economic development.
