The Nigeria Employers’ Consultative Association has said that many businesses are yet to feel the positive impact of the federal government’s economic reforms.
NECA Director-General Adewale-Smatt Oyerinde told the News Agency of Nigeria on Sunday that companies are still grappling with inflation, high energy costs and foreign exchange volatility, despite some gains in key economic indicators.
He noted that while recent reforms have strengthened investor confidence and improved transparency, their benefits have not yet fully filtered into the business environment.
He said the removal of the petrol subsidy and the liberalisation of the foreign exchange market reflect a shift towards market-driven economic policies.
However, he noted that many businesses, particularly small and medium-sized enterprises, are still facing significant pressure.
“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 the depreciation of the naira has driven up production costs and weakened the competitiveness of local businesses.
He attributed the worsening situation partly to weak consumer spending.
According to the director-general, some firms have had to adjust their operations and scale back investment plans in response to rising costs.
The NECA director-general acknowledged progress in areas such as local refining, housing, and industrial investments.
He said these developments have created new business opportunities and helped improve fuel supply.
“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 added that employers remain cautious about hiring, citing high borrowing costs, foreign exchange uncertainty and rising operating expenses.
Oyerinde said sustainable job creation would require deeper reforms aimed at reducing the cost of doing business and improving access to affordable financing.
He also urged the government to stabilise the foreign exchange market, improve electricity supply and harmonise taxes.
