The Nigeria Employers’ Consultative Association (NECA) has said that despite signs of progress arising from the Federal Government’s economic reforms, many businesses across the country have yet to experience the full advantages expected from the policy changes.
Speaking in Abuja on Sunday, the Director-General of NECA, Mr Adewale-Smatt Oyerinde, acknowledged that recent reforms, particularly the removal of fuel subsidy and the liberalisation of the foreign exchange market, demonstrated the administration’s commitment to transparency and market-oriented economic management.
According to him, the measures have contributed to improved fuel availability, reduced supply disruptions and sent positive signals to both domestic and international investors regarding policy direction and consistency.
However, Oyerinde noted that the positive macroeconomic outlook has not translated into widespread relief for businesses, especially Micro, Small and Medium Enterprises (MSMEs), which continue to struggle with rising operational costs and an uncertain business environment.
He observed that the depreciation of the naira has significantly increased the cost of production, weakened competitiveness and heightened financial risks for many firms operating across different sectors.
“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,” he said.
The NECA chief explained that shrinking consumer purchasing power, combined with escalating production expenses, has forced many companies to review expansion plans and adjust business operations in order to survive prevailing economic conditions.
Assessing developments in infrastructure and energy, Oyerinde acknowledged improvements in areas such as housing, industrial investments and local refining capacity, noting that these initiatives have helped improve fuel supply and created new opportunities for economic activity.
Despite these gains, he identified electricity supply as the most pressing obstacle confronting businesses nationwide.
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“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.
Oyerinde further stated that although indicators such as foreign reserves and government revenues have recorded improvements, the impact has not yet filtered through to businesses and households in a meaningful way.
“Inflation, high energy costs, multiple taxation, logistics challenges and weak consumer spending continue to constrain productivity and limit business expansion,” he said.
He noted that many employers remain reluctant to embark on large-scale recruitment due to high borrowing costs, exchange-rate uncertainty and the overall rise in operating expenses.
According to him, sustainable employment growth will only be achieved through deeper structural reforms capable of reducing business costs and improving access to affordable financing.
The NECA Director-General urged the government to intensify efforts toward ensuring stable electricity supply, reducing energy costs, harmonising taxes, maintaining policy consistency and stabilising the foreign exchange market to strengthen economic recovery.
He also advocated greater investment in technical and vocational education, expansion of digital skills programmes and stronger collaboration between government and the private sector to prepare the workforce for emerging opportunities.
In addition, Oyerinde called for increased support for local manufacturing through patronage of made-in-Nigeria products, accelerated infrastructure development and enhanced security around critical business and investment corridors.
Despite the challenges, he expressed optimism that if reforms are sustained and complemented by targeted interventions, businesses would eventually begin to experience broader economic gains capable of driving growth, boosting employment and supporting long-term national development.
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