CPPE seeks stronger legal framework to protect rights of investors, employers

The Centre for the Promotion of Private Enterprise (CPPE) says Nigeria urgently needs a robust legal and policy framework to protect investors and employers.

In a statement on Sunday, Muda Yusuf, director and chief executive officer (CEO) of CPPE, said investors, entrepreneurs, and employers are the “lifeblood of every modern economy”, as they take risks, mobilise capital, create jobs, generate tax revenues, and drive innovation.

However, he said the rights and investments of these economic actors “remain inadequately protected” in Nigeria, even though the law provides significant safeguards for workers and employees.

“This imbalance undermines investor confidence and leaves those who create jobs vulnerable to disruptions — particularly from industrial actions by labour unions,” he said.

“The real sector is especially exposed, given its large workforce, high fixed costs, and significant sunk investments. There are worries as well about the seemingly unlimited powers of regulatory institutions.

“A robust policy response is therefore imperative — one that creates a fair, predictable, and secure investment climate; protects those who create jobs; and ensures that industrial relations are governed by law, due process, and mutual respect.”

Yusuf said weak legal protection, unrestrained union actions, regulatory unpredictability, bureaucratic bottlenecks, and weak dispute resolution are four key sources of vulnerability for investors.

The CPPE chief said these factors erode Nigeria’s competitiveness, deter both local and foreign investment, slow job creation, and economic growth.

“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.

“Unrestrained strikes in strategic sectors such as energy, transport, and health disrupt production, threaten national security, and endanger public welfare.”

‘ENACT PROTECTION ACT, PANEL FOR EMPLOYERS’

To address these challenges, the economist recommended the enactment of an Investor and Employer Protection Act to provide a strong legal foundation for safeguarding investor rights.

The proposed law, according to Yusuf, should codify the rights and obligations of investors, employers, regulators, and labour unions; prohibit coercion, intimidation, and unlawful shutdowns; and establish penalties and restitution mechanisms for violations.

The CEO also called for the strengthening of the industrial arbitration panel (IAP) to ensure faster and impartial resolution of industrial disputes, and the creation of an independent investment ombudsman office to mediate complaints involving government agencies.

While acknowledging the legitimate role of labour unions, the CPPE boss said their activities must align with the law and national interest.

He proposed that industrial actions in strategic sectors such as energy, health, transport, and ICT be restricted or subjected to compulsory arbitration.

“Labour rights should end where those of employers begin,” he added.

“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.”

Yusuf further urged government to ensure regulatory and policy stability by conducting investor impact assessments before major policy changes, adopting a no-retroactivity rule, and publishing a five-year policy roadmap to give investors clarity.

The director also suggested the creation of a business rights tribunal to handle investor protection cases, and a public transparency dashboard to track industrial actions, regulatory decisions, and investor grievances in real time.

‘NO SUSTAINED GROWTH WITHOUT EMPLOYERS, INVESTORS’

He said implementing these reforms will restore investor confidence, stimulate private-sector job creation, reduce strike-related disruptions, promote transparency, and strengthen Nigeria’s competitiveness.

“Protecting investors and employers is not a privilege — it is a national economic imperative. Without them, there can be no sustained growth, no employment, and no national prosperity,” Yusuf said.

The economist said Nigeria must urgently establish a fair, secure, and predictable business environment that safeguards those who take risks to create wealth.