The Nigeria Employers’ Consultative Association (NECA) has said businesses across the country are yet to fully experience the expected benefits of the Federal Government’s ongoing economic reforms.
Adewale-Smatt Oyerinde, Director-General of NECA, made the assessment in Abuja on Sunday, acknowledging that the removal of the fuel subsidy and liberalisation of the foreign exchange market reflect the government’s commitment to market-driven policies and improved transparency.
He said the reforms had enhanced fuel availability and signalled policy consistency to investors. However, he noted that while investor confidence has shown some improvement, many domestic businesses—particularly Micro, Small, and Medium Enterprises (MSMEs)—continue to struggle.
“Many private sector operators are yet to experience the anticipated gains of the reforms as they continue to grapple with inflation, energy costs and exchange rate volatility,” Mr Oyerinde said.
He added that the depreciation of the naira had increased production costs, weakened competitiveness, and heightened operational risks.
Power supply remains ‘number one constraint’
On infrastructure, Mr Oyerinde acknowledged progress in housing, industrial investments, and local petroleum refining, which have contributed to improved fuel supply.
However, he identified electricity as a major obstacle. “In spite of the ongoing reforms in the power sector, insufficient electricity supply remains the number one constraint to business productivity and competitiveness across the country,” he said.
He noted that while some macroeconomic indicators—including foreign reserves and government revenues—have improved, the gains are yet to be broadly reflected in business operations and household welfare.
Inflation, high energy costs, multiple taxation, logistics challenges, and weak consumer spending continue to constrain productivity and limit business expansion, he added.
Employers cautious on hiring
The NECA Director-General warned that employers remain cautious about large-scale recruitment amid high borrowing costs, forex volatility, and rising operating expenses. Sustainable job creation, he said, will depend on deeper structural reforms that reduce the cost of doing business and improve access to affordable finance.
He urged the government to prioritise stable power supply, lower energy costs, tax harmonisation, policy consistency, and foreign exchange stability to accelerate economic recovery and strengthen investor confidence.
Mr Oyerinde also called for increased investment in technical and vocational education, digital skills development, and stronger public-private collaboration to enhance workforce readiness. He advocated support for local production through patronage of made-in-Nigeria goods, infrastructure development, and improved security in key business corridors.
He expressed optimism that sustained reforms and targeted interventions would eventually enable businesses to enjoy broader benefits capable of driving growth, employment, and long-term economic development.