Economic reforms yet to fully impact businesses, says NECA

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The Nigeria Employers’ Consultative Association (NECA) says businesses across the country are yet to fully experience the expected benefits of the Federal Government’s ongoing economic reforms.

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Mr Adewale-Smatt Oyerinde, Director-General of NECA, said this in an interview with Newsmen on Sunday in Abuja while assessing the administration’s economic performance.

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Oyerinde acknowledged that the removal of fuel subsidy and liberalisation of the foreign exchange market reflected government’s commitment to market-driven economic policies and improved transparency across sectors.

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He said the reforms had enhanced fuel availability, reduced recurring supply disruptions and signalled policy consistency to both local and foreign investors.

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According to him, while there are indications of improved investor confidence, many domestic businesses, particularly Micro, Small and Medium Enterprises (MSMEs), continue to contend with operational challenges.

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He said depreciation of the naira had increased production costs, affected competitiveness and heightened operational risks for many businesses.

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“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.

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Oyerinde said declining consumer purchasing power and increasing production expenses had placed pressure on businesses, with some firms adjusting investment plans and operations in response to prevailing economic conditions.

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On infrastructure and refining, Oyerinde said developments in housing, industrial investments and local petroleum refining had created opportunities and contributed to improved fuel supply.

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He, however, identified power supply as a major challenge facing businesses, citing persistent grid instability and reliance on alternative energy sources.

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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.

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Oyerinde said that although some macroeconomic indicators, including foreign reserves and government revenues, had shown improvement, the gains were yet to be broadly reflected in business operations and household welfare.

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“Inflation, high energy costs, multiple taxation, logistics challenges and weak consumer spending continue to constrain productivity and limit business expansion,” he said.

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The NECA director-general said employers remained cautious about large-scale recruitment amid high borrowing costs, foreign exchange volatility and rising operating expenses.

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According to him, sustainable job creation will depend on deeper structural reforms that reduce the cost of doing business and improve access to affordable finance.

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He urged 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.

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Oyerinde also called for increased investment in technical and vocational education, digital skills development and stronger public-private sector collaboration to enhance workforce readiness and enterprise growth.

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He advocated support for local production through patronage of made-in-Nigeria goods, infrastructure development and improved security in key business and investment corridors.

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Oyerinde expressed optimism that sustained reforms and targeted interventions would enable businesses to experience broader benefits capable of driving growth, employment and long-term economic development.

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