The Nigeria Employers’ Consultative Association (NECA) says businesses across the country have yet to fully realize the expected benefits of the Federal Government’s ongoing economic reforms.
Mr. Adewale-Smatt Oyerinde, Director-General of NECA, made this statement in an interview with reporters on Sunday in Abuja, while assessing the administration’s economic performance.
Oyerinde acknowledged that the removal of fuel subsidies and the liberalization of the foreign exchange market demonstrated the government’s commitment to market-driven policies and increased transparency across sectors.
He noted that these reforms had improved fuel availability, reduced supply disruptions, and signaled policy consistency to both local and foreign investors.
However, he observed that despite signs of increased investor confidence, many domestic businesses, especially Micro, Small, and Medium Enterprises (MSMEs), continue to face operational challenges.
He pointed out that the depreciation of the naira has raised production costs, impacted competitiveness, and increased operational risks for many firms.
“Many private sector operators have not yet experienced the anticipated gains from the reforms, as they still struggle with inflation, energy costs, and exchange rate volatility,” he said.
Oyerinde explained that declining consumer purchasing power and rising production expenses have pressured businesses, prompting some to adjust their investment plans and operations.
Regarding infrastructure and refining, he stated that developments in housing, industrial investments, and local petroleum refining have created opportunities and improved fuel supply.
However, he identified power supply as a major challenge, citing persistent grid instability and dependence on alternative energy sources.
“In spite of ongoing reforms in the power sector, insufficient electricity supply remains the top constraint to business productivity and competitiveness nationwide,” he emphasized.
While some macroeconomic indicators, like foreign reserves and government revenues, have improved, Oyerinde noted that these gains have not yet significantly reflected in business activities or household welfare.
“Inflation, high energy costs, multiple taxes, logistics issues, and weak consumer spending continue to hinder productivity and limit business expansion,” he said.
He added that employers remain cautious about large-scale hiring due to high borrowing costs, exchange rate fluctuations, and rising operating expenses.
According to Oyerinde, sustainable job creation will require deeper structural reforms that reduce the cost of doing business and improve access to affordable finance.
He urged the government to focus on stabilizing power supply, reducing energy costs, harmonizing taxes, ensuring policy consistency, and maintaining foreign exchange stability to accelerate economic recovery and boost investor confidence.
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.
He advocated supporting local production through patronage of made-in-Nigeria goods, infrastructure development, and improved security in key business corridors.
Oyerinde expressed optimism that sustained reforms and targeted interventions would help businesses realize broader benefits, fostering growth, employment, and long-term economic development.
