FG’s Economic Reforms Yet To Fully Impact Businesses — NECA

0

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.

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

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

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

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

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

“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.

Oyerinde said that declining consumer purchasing power and rising production costs had put pressure on business­es, with some firms adjusting investment plans and opera­tions in response to prevailing economic conditions.

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

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

“Inflation, high energy costs, multiple taxation, logistics challenges and weak consum­er spending continue to con­strain productivity and limit business expansion,” he said. The NECA director-general said employers remained cautious about large-scale recruitment amid high borrowing costs, foreign exchange volatility and rising operating expenses.

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.

He urged the 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.

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

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