The Centre for the Promotion of Private Enterprise (CPPE) on Sunday lamented that investors in Nigeria remain exposed to harassment and service disruptions due to a lack of comprehensive legislation guaranteeing their rights or shielding them from arbitrary regulatory decisions and unlawful shutdowns.
In a statement released by the CPPE Director and Chief Executive Officer, Dr Muda Yusuf, the organisation warned that persistent harassment and shutdowns of investment structures could lead to loss of investor confidence, increased capital flight, a decline in foreign direct investment, and contraction of domestic enterprises.
According to the CPPE statement, ‘Investors in Nigeria operate in an environment marked by uncertainty and institutional weakness. Key sources of vulnerability include: Weak legal protection; a growing culture of coercion, intimidation, and impunity among labour unions, resulting in industrial actions that are often out of proportion; Frequent policy reversals, inconsistent enforcement, and opaque regulatory processes raise business risks and discourage long-term investments; and 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.’
On the economic implications, the CPPE stated that, ‘Investor vulnerability carries serious macroeconomic and social consequences.
‘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.
‘Unrestrained strikes in strategic sectors such as energy, transport, and health disrupt production, threaten national security, and endanger public welfare.
‘Policy inconsistency and regulatory arbitrariness make long-term planning difficult, deepening Nigeria’s dependence on imports and weakening its industrial base.
‘Without corrective reforms, these trends will continue to erode national competitiveness, discourage innovation, and diminish Nigeria’s economic resilience.’
On recommendations, the CPPE stated that, ‘Nigeria should enact a dedicated Investor and Employer Protection Act to provide a strong legal foundation for safeguarding investors’ rights.
‘The Act should: Codify the rights and obligations of investors, employers, regulators, and unions; Prohibit unlawful actions such as intimidation, coercion, unauthorized shutdowns, and harassment; Establish penalties, damages, and restitution mechanisms for violations.
‘The Industrial Arbitration Panel (IAP) should be strengthened for faster, impartial resolution of industrial disputes.
‘An Independent Investment Ombudsman Office should also be created to handle investor complaints and mediate disputes involving government agencies.’
On incessant strike actions by labour unions, the CPPE explained that, ‘Labour unions play a legitimate role in protecting workers, but their activities must align with the law and national interest.
‘Reforms should include: Proportionality of industrial actions; Designation of strategic sectors – including energy, health, transport, and ICT – as essential services, where strikes are restricted or prohibited; Introduction of compulsory arbitration in essential sectors to prevent economic paralysis. Clear sanctions and restitution requirements for unlawful strikes that inflict damage on businesses and the economy. 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.
‘Mandatory publication of audited union accounts and governance records to enhance transparency.’
Concluding, the CPPE added that, ‘Protecting investors and employers is not a privilege – it is a national economic imperative.
‘Investors mobilize capital, create jobs, and generate the tax revenues that sustain government and society. Without them, there can be no sustained growth, no employment, and no national prosperity.
‘Nigeria must, therefore, urgently institutionalize a fair, secure, and predictable business environment that protects those who take risks to create wealth. This is not about weakening labour unions, but about balancing rights and responsibilities – to foster sustainable economic growth, social stability, and national security.’