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The Centre for the Promotion of Private Enterprise (CPPE) calls for a new law to protect investors and employers in Nigeria.
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CPPE says weak legal protection and unrestrained union actions are hurting investment confidence and economic stability.
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The group proposes the establishment of an Investor and Employer Protection Act and compulsory arbitration for strikes in key sectors.
The Centre for the Promotion of Private Enterprise (CPPE) has called on the Federal Government to urgently introduce a new legal framework to protect investors and employers from regulatory abuses, arbitrary union actions, and policy instability threatening business operations in Nigeria.
In a policy brief released on Sunday, the Director and Chief Executive Officer of CPPE, Dr. Muda Yusuf, said investors, entrepreneurs, and employers are the backbone of the Nigerian economy, yet their rights and investments remain poorly safeguarded.
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“Investors, entrepreneurs, and employers take risks, mobilise capital, create jobs, generate tax revenues, and drive innovation. Yet their rights and investments remain inadequately protected,” Yusuf said.
Dr. Yusuf lamented that while Nigerian labour laws provide strong protection for employees, there is no equivalent legal framework shielding employers and investors who take financial risks to sustain the economy.
He identified weak legal protection, unrestrained union activities, regulatory unpredictability, and bureaucratic bottlenecks as major threats eroding investor confidence and discouraging both local and foreign investments.
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“This imbalance undermines investor confidence and leaves those who create jobs vulnerable to disruptions — particularly from industrial actions by labour unions,” he noted.
Yusuf added that the real sector remains the most exposed, given its large workforce and heavy operational costs.
To address these challenges, CPPE is proposing the enactment of an Investor and Employer Protection Act, which would:
Define and codify the rights and responsibilities of investors, employers, regulators, and labour unions.
Prohibit coercion, intimidation, and unlawful industrial shutdowns.
Establish penalties and restitution mechanisms for violations.
Create a more predictable and transparent business climate.
Dr. Yusuf further urged government to strengthen the Industrial Arbitration Panel (IAP) for faster, impartial resolution of industrial disputes, and establish an independent Investment Ombudsman Office to mediate conflicts involving investors and government agencies.
While acknowledging the constitutional role of labour unions, Yusuf cautioned that their powers must be exercised with restraint and in alignment with national interest.
“Labour rights should end where those of employers begin. Investors should have as much right to protect their investments as labour unions have to protect workers,” he said.
He therefore proposed that industrial actions in strategic sectors such as energy, transport, health, and ICT should be restricted or subjected to compulsory arbitration to prevent nationwide economic disruptions.
The CPPE boss warned that continued investor insecurity could trigger capital flight, job losses, and economic stagnation.
“When investors lose confidence, capital flight intensifies, foreign direct investment declines, and domestic enterprises contract operations. The resulting chain reaction includes job losses, declining tax revenues, and slower economic growth,” Yusuf cautioned.
He maintained that protecting investors and employers is not a privilege but a national economic necessity that will restore business confidence and accelerate private-sector-led growth.
“Without investors and employers, there can be no sustained growth, no employment, and no national prosperity,” he added.
