The Nigeria Employers’ Consultative Association (Nigeria Employers’ Consultative Association (NECA)) has stated that the Federal Government’s ongoing economic reforms have not yet fully translated into tangible benefits for businesses across Nigeria.
The Director-General of NECA, Adewale-Smatt Oyerinde, made this known during an interview in Abuja, where he reviewed the current economic policies of the administration.
He noted that key reforms such as the removal of fuel subsidy and the liberalisation of the foreign exchange market reflect a shift toward market-driven policies and greater transparency. According to him, these measures have helped improve fuel availability, reduce supply disruptions, and strengthen investor confidence.
However, Oyerinde stressed that many businesses, particularly Micro, Small and Medium Enterprises (MSMEs), are still struggling with high production costs, inflation, and exchange rate instability. He explained that the depreciation of the naira has significantly increased operational expenses and weakened competitiveness across sectors.
He also pointed out that while there are signs of improved investor sentiment, declining consumer purchasing power and rising costs have forced several companies to adjust investment and expansion plans.
On infrastructure, he acknowledged progress in housing, industrial investments, and local refining capacity, which he said have contributed to better fuel supply. Nevertheless, he identified unreliable power supply as the most critical challenge facing businesses, despite ongoing reforms in the sector.
“In spite of the reforms, insufficient electricity remains the number one constraint to productivity and competitiveness,” he noted.
Oyerinde added that although macroeconomic indicators such as foreign reserves and government revenue have improved, these gains are yet to be widely felt by businesses and households. He cited inflation, multiple taxation, logistics difficulties, and weak consumer demand as ongoing constraints.
He further observed that employers are cautious about hiring due to high borrowing costs and foreign exchange volatility, noting that sustainable job creation will require deeper structural reforms that reduce the cost of doing business and improve access to affordable finance.
NECA called on the government to prioritise stable electricity supply, tax harmonisation, policy consistency, and exchange rate stability to strengthen investor confidence and support economic recovery. It also urged increased investment in technical education, digital skills, and stronger collaboration between the public and private sectors to improve workforce readiness.
Oyerinde concluded by expressing optimism that continued reforms, if properly implemented, would eventually deliver broader economic benefits, stimulate growth, and create more employment opportunities.
