The Nigeria Employers’ Consultative Association (NECA) has stated that businesses across the country are yet to fully enjoy the expected benefits of the Federal Government’s ongoing economic reforms.
Speaking in an interview with the News Agency of Nigeria (NAN) on Sunday in Abuja, NECA’s Director-General, Adewale-Smatt Oyerinde, assessed the administration’s economic performance and noted that the reforms had not translated into widespread relief for businesses.
Oyerinde acknowledged that the removal of fuel subsidies and the liberalisation of the foreign exchange market demonstrated the government’s commitment to market-oriented policies and greater transparency in the economy.
According to him, the measures have improved fuel availability, reduced persistent supply disruptions and sent positive signals of policy consistency to both domestic and international investors.
He noted that while there are signs of growing investor confidence, many local businesses, especially Micro, Small and Medium Enterprises (MSMEs), continue to face significant operational difficulties.
Oyerinde said the depreciation of the naira has driven up production costs, weakened competitiveness and increased business risks across several 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.
He further explained that shrinking consumer purchasing power and rising production expenses have put considerable strain on businesses, forcing some companies to review their investment strategies and operational plans.
On infrastructure and refining, Oyerinde said progress in housing projects, industrial investments and local petroleum refining had opened up new opportunities and contributed to better fuel supply.
However, he identified inadequate electricity supply as one of the most serious obstacles confronting businesses, pointing to ongoing grid instability and the heavy dependence on alternative power sources.
“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 added that although certain macroeconomic indicators, such as foreign reserves and government revenues, have improved, the positive effects have yet to be widely felt by businesses and households.
“Inflation, high energy costs, multiple taxation, logistics challenges and weak consumer spending continue to constrain productivity and limit business expansion,” he said.
The NECA chief noted that employers remain reluctant to embark on large-scale hiring due to high borrowing costs, foreign exchange instability and increasing operating expenses.
He stressed that long-term job creation would require more comprehensive structural reforms aimed at lowering business costs and improving access to affordable financing.
Oyerinde urged the government to focus on ensuring stable electricity supply, reducing energy costs, harmonising taxes, maintaining policy consistency and stabilising the foreign exchange market to speed up economic recovery and boost investor confidence.
He also advocated greater investment in technical and vocational education, digital skills training and stronger collaboration between the public and private sectors to improve workforce preparedness and support enterprise development.
In addition, he called for stronger support for local manufacturing through increased patronage of made-in-Nigeria products, infrastructure improvements and enhanced security in key business and investment locations.
Despite the challenges, Oyerinde expressed confidence that continued reforms and targeted policy interventions would eventually allow businesses to benefit more broadly, fostering economic growth, job creation and sustainable development.