Nigerian businesses still struggling three years after reforms, says NECA

The Nigeria Employers’ Consultative Association on Monday said the economic reforms introduced by the Federal Government have yet to ease the burden on businesses, as firms continue to battle soaring energy costs, inflation, unstable exchange rates and multiple taxes.

The association, however, acknowledged that the reforms were necessary to reposition the economy for sustainable growth.

The employers’ association disclosed this at its two-day Employers’ Summit in Abuja, themed “Leveraging Reforms and ESG for Enterprise Competitiveness and Inclusive National Growth.”

Speaking at the opening ceremony of the fifth edition of the summit in Abuja, the President of NECA, Ifeanyi Okoye, represented by the association’s Treasurer, Richard Ayibiowu, said the summit was taking place at a critical point in Nigeria’s economic transformation journey.

He noted that the time had come to undertake a comprehensive review of the impact of the reforms on businesses, employment and investment, warning that many enterprises, particularly Micro, Small and Medium Enterprises, were finding it increasingly difficult to cope with the adjustment burden.

According to him, the Federal Government has, over the past three years, embarked on far-reaching reforms aimed at addressing structural distortions and placing the economy on a stronger footing.

He said, “Over the past three years, the Federal Government has pursued a series of bold and far-reaching reforms aimed at addressing longstanding structural challenges, strengthening fiscal sustainability, enhancing public finance management, improving revenue generation, and positioning the economy for long-term growth and competitiveness.

“As employers and investors, we appreciate the courage and commitment required to implement reforms of this scale. Measures such as the removal of fuel subsidies, foreign exchange market reforms, ongoing tax reforms, initiatives to improve the ease of doing business, and efforts to stimulate industrial development reflect a deliberate attempt to place the economy on a stronger and more sustainable foundation.”

The NECA president, however, stressed that the true measure of any reform programme lies in its impact on businesses and ordinary Nigerians.

“However, the effectiveness of any reform programme is ultimately determined not only by its intentions but by its impact on businesses and citizens. Three years into this reform journey, it is both timely and necessary to evaluate how these policies have influenced enterprise growth, employment generation, investment, productivity, competitiveness, and overall economic welfare.

“While there have been positive developments in certain macroeconomic indicators, businesses continue to operate in a challenging environment. High energy costs, persistent inflationary pressures, exchange rate volatility, multiple taxation, infrastructure deficits, logistics constraints, regulatory complexities, and weakened consumer purchasing power continue to affect business performance across sectors. For many enterprises, particularly Micro, Small and Medium Enterprises (MSMEs), the adjustment burden has been significant.”

Against this backdrop, the president said the summit’s theme provides an opportunity for stakeholders to reflect on the impact of the ongoing reforms, engage in constructive discussions and develop practical solutions to address the challenges facing businesses and the wider economy.

He said the summit would provide a platform for critical stakeholders to assess the progress of the reform agenda and identify practical solutions that would improve enterprise competitiveness and strengthen policy implementation.

Ayibiowu also announced the launch of the Environmental, Social and Governance Implementation Guide for MSMEs in Nigeria, developed through a partnership between NECA and the International Labour Organisation.

He said the guide had become necessary because sustainability considerations now influence investment decisions, access to finance and participation in global value chains.

“As environmental, social and governance considerations increasingly influence investment decisions, access to finance, market opportunities and participation in global value chains, Nigerian enterprises must be adequately prepared to respond.

“The Guide offers a practical framework to support MSMEs in integrating sustainability into their business operations while strengthening resilience, improving productivity and enhancing long-term business performance,” he stated.

In his welcome address, the Director-General of NECA, Adewale Smart Oyerinde, said the organised private sector had consistently advocated the removal of fuel subsidy long before the current administration implemented the policy.

“One of the key recommendations consistently made by the organised private sector over the years was the removal of the fuel subsidy. Every Annual General Meeting address by successive Presidents of NECA reinforced that position. Today, the subsidy has been removed, and we are all living with the realities of that decision,” he said.

Oyerinde described the reforms as difficult but inevitable, adding that the responsibility of the organised private sector was to ensure that government understood the challenges confronting businesses and the policy adjustments required to improve competitiveness.

“The organised private sector understands this reality. Our responsibility is to ensure that government also understands where businesses are experiencing challenges and what policy adjustments are required to improve enterprise competitiveness.

“This summit provides that platform. It ensures that the voice of employers is heard and that policies are informed by practical business realities.”

The NECA DG disclosed that beginning from 2027, the Nigeria Employers’ Summit would be transformed into the International Employers’ Summit.

According to him, the move is aimed at creating a global platform for discussions on investment, labour migration, enterprise development and economic transformation.

“By the grace of God and with the support of our partners across Africa and the world, I am pleased to announce that beginning in 2027, the Nigerian Employers’ Summit will transition into the International Employers’ Summit.

“Through our partnerships in more than 50 African countries and our affiliation with the International Labour Organisation, representing over 180 member states, the summit will become a global platform for dialogue on investment, labour migration, enterprise development and economic transformation.”

Delivering a goodwill message, the Director-General of the Nigeria Social Insurance Trust Fund, Oluwaseun Faleye, said workers’ welfare and enterprise competitiveness were mutually reinforcing.