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Investors, entrepreneurs, and em­ployers are the lifeblood of every modern economy.

They take risks, mobilise capital, create jobs, generate tax revenues, and drive innovation. Yet, in Nigeria, their rights and investments remain inade­quately protected.

While significant legal safeguards exist for workers and employees, there is no comprehensive framework that protects the interests of investors and employers.

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

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.

Investor and Employer Vulnera­bility

Investors in Nigeria operate in an en­vironment marked by uncertainty and institutional weakness. Key sources of vulnerability include:

1. Weak legal protection:

There is no comprehensive legisla­tion guaranteeing the rights of inves­tors or shielding them from harass­ment, arbitrary regulatory decisions, or unlawful shutdowns.

2. Unrestrained union actions:

A growing culture of coercion, intim­idation, and impunity among labour unions, resulting in industrial actions that are often out of proportion.

These frequently escalate into large-scale disruptions that paralyze produc­tion, inflict huge financial losses, and undermine national economic stability. There is a growing and disturbing in­cidence of incredibly disproportionate industrial actions.

3. Regulatory unpredictability:

Frequent policy reversals, inconsis­tent enforcement, and opaque regula­tory processes raise business risks and discourage long-term investments.

4. Bureaucratic bottlenecks and weak dispute resolution:

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.

Economic and Social Consequenc­es

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.

Policy Objectives

The goal of a new Investor and Em­ployer Protection Framework should be to establish a fair, balanced, and predictable environment for business. Specifically, it should:

• Protect investors and employers from arbitrary actions by regulators, la­bour unions, and government agencies.

• Rebalance industrial relations to ensure fairness and due process for all parties.

• Safeguard strategic sectors of the economy from disruptions that threaten national stability.

• Promote regulatory and policy stability to reduce uncertainty and en­hance competitiveness.

• Ensure accountability and enforce­ment of laws by unions, regulators, and employers alike.

Policy Recommendations

1. Legal and Institutional Reforms

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.

2. Labour Relations and Union Ac­countability

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.

3. Regulatory and Policy Stability

Long-term investments require pre­dictability. Government should there­fore:

• Conduct Investor Impact Assess­ments prior to major policy or regula­tory changes.

• Adopt a no-retroactivity rule, en­suring that new laws or policies do not unfairly penalize existing investors.

• Publish a rolling five-year policy roadmap outlining key priorities and regulatory direction — one that tran­scends political cycles to give investors clarity and stability.

• The limits of regulatory powers should be clearly defined. Such pow­ers should not be absolute. Regulatory agencies should be the accuser, jury and the judge

4. Bureaucratic and Security Agency Conduct

Investor–government interactions must be governed by transparency and due process. Accordingly:

• Establish protocols that prevent arbitrary shutdowns or reputational damage to businesses without lawful authorization.

• Digitize all licensing, permitting, and compliance procedures to minimize discretion, reduce corruption risks, and shorten approval timelines.

• Mandate inter-agency coordination to prevent overlapping or conflicting di­rectives affecting investors.

5. Enforcement and Governance Mechanisms

To uphold investor rights and en­sure accountability:

• Create a Business Rights Tribunal to handle investor protection cases swiftly.

• Launch a Public Transparency Dashboard to monitor industrial ac­tions, regulatory decisions, and investor grievances in real time.

• Publish periodic Investor Protec­tion Reports assessing government and union compliance with established standards.

Expected Outcomes

Implementation of this framework will:

• Restore investor confidence and at­tract both domestic and foreign capital.

• Stimulate private-sector job creation and expand fiscal revenues.

• Reduce strike-related disruptions in critical sectors.

• Promote transparency, due process, and accountability in government–busi­ness relations.

• Strengthen Nigeria’s overall com­petitiveness, industrial productivity, and economic resilience.

Conclusion

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 in­stitutionalise 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.

• Dr. Muda Yusuf, a former Director General of Lagos Chamber of Commerce and Industry (LCCI), is the Chief Execu­tive Officer of the Centre for the Promo­tion of Private Enterprise. (CPPE)