The Nigeria Employers’ Consultative Association (NECA) has said that the ongoing economic reforms introduced by the Federal Government have not yet translated into full benefits for businesses across the country.
The Director-General of NECA, Adewale-Smatt Oyerinde, made this known in an interview with the News Agency of Nigeria in Abuja, where he reviewed the current state of the economy under the present administration.
He noted that recent policy measures such as the removal of fuel subsidy and the liberalisation of the foreign exchange market demonstrate government’s commitment to market-oriented reforms, improved transparency, and a more stable investment environment.
According to him, these steps have contributed to better fuel availability, fewer supply disruptions, and a clearer policy direction that is encouraging to both local and foreign investors.
However, Oyerinde explained that many domestic businesses, especially Micro, Small and Medium Enterprises (MSMEs), are still struggling to cope with rising operational costs and economic uncertainties.
He pointed out that the depreciation of the naira has significantly increased production expenses, reduced competitiveness, and exposed firms to greater financial risks.
He added that despite signs of improved investor confidence, most private sector operators are yet to feel the positive impact of the reforms, as inflation, high energy costs, and foreign exchange instability continue to weigh heavily on operations.
Oyerinde also said that declining consumer purchasing power and rising input costs have forced some businesses to scale down investments and adjust their operations to survive current economic pressures.
While acknowledging progress in areas such as housing development, industrial investments, and local petroleum refining—which he said have improved fuel supply—he stressed that inadequate power supply remains a major obstacle to business growth in Nigeria.
He described electricity shortage and grid instability as the most serious constraints to productivity, noting that many firms are still dependent on costly alternative energy sources.
Although he admitted that macroeconomic indicators like foreign reserves and government revenue have shown some improvement, he said these gains are yet to be fully reflected in business performance and household welfare.
He further highlighted persistent challenges such as inflation, multiple taxation, logistics difficulties, and weak consumer demand as key factors limiting expansion and productivity.
Oyerinde also observed that employers are currently cautious about large-scale hiring due to high borrowing costs, exchange rate volatility, and rising operational expenses.
He maintained that sustainable job creation would depend on deeper structural reforms aimed at reducing the cost of doing business and improving access to affordable financing.
He called on the government to prioritise stable electricity supply, lower energy costs, tax harmonisation, consistent policies, and exchange rate stability to strengthen investor confidence and support economic recovery.
Additionally, he urged increased investment in vocational and technical education, digital skills development, and stronger collaboration between the public and private sectors to improve workforce capacity.
Oyerinde also advocated greater support for local production through patronage of made-in-Nigeria goods, improved infrastructure, and enhanced security in key commercial corridors.
He expressed optimism that with sustained reforms and targeted interventions, Nigerian businesses would eventually experience broader gains that would drive growth, job creation, and long-term economic development.