ABUJA, Nigeria (VOICE OF NAIJA)-The Nigeria Employers’ Consultative Association (NECA) says businesses across the country are yet to fully feel the expected impact of the Federal Government’s ongoing economic reforms.
Director-General of NECA, Mr Adewale-Smatt Oyerinde, stated this in an interview with the News Agency of Nigeria on Sunday in Abuja while reviewing the administration’s economic performance.
He acknowledged that the removal of fuel subsidy and the liberalisation of the foreign exchange market demonstrate the government’s shift toward market-driven policies and greater transparency across key sectors.
According to him, the reforms have improved fuel availability, reduced supply disruptions and signalled policy direction to both domestic and foreign investors.
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He noted that while investor confidence appears to be improving, many local businesses, especially Micro, Small and Medium Enterprises (MSMEs), are still facing significant operational pressures.
Oyerinde said the depreciation of the naira has raised production costs, weakened competitiveness and increased risks for businesses operating in the country.
“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 added that declining consumer purchasing power and rising production expenses have forced some firms to adjust their investment and operational plans.
On infrastructure and refining, Oyerinde said developments in housing, industrial investments and local refining capacity have created opportunities and helped improve fuel supply.
However, he identified power supply as a major constraint to business growth, citing persistent grid instability and heavy 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 macroeconomic indicators such as foreign reserves and government revenue have improved, these gains are yet to significantly reflect 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.
He added that employers are remaining cautious about large-scale hiring due to high borrowing costs, exchange rate instability and rising operating expenses.
According to him, sustainable job creation will depend on deeper structural reforms that reduce the cost of doing business and expand access to affordable financing.
He urged the government to prioritise stable electricity supply, lower energy costs, tax harmonisation, policy consistency and foreign exchange stability to strengthen economic recovery and investor confidence.
Oyerinde also called for greater investment in technical and vocational education, digital skills development and stronger collaboration between the public and private sectors to improve workforce readiness.
He advocated support for local production through patronage of made-in-Nigeria goods, improved infrastructure and enhanced security in key business corridors.
Oyerinde expressed optimism that sustained reforms and targeted interventions would eventually enable businesses to experience broader economic gains, driving growth, job creation and long-term development.