NECA: Tinubu’s reforms yet to ease business hardship

The Nigeria Employers’ Consultative Association (NECA) has said that while the Federal Government’s economic reforms were necessary, businesses across the country are yet to experience meaningful relief from the challenges confronting the private sector.

Speaking at the opening of the fifth Nigeria Employers’ Summit in Abuja on Monday, the association said companies continue to grapple with soaring energy costs, inflation, exchange rate instability, multiple taxation and other operational constraints despite ongoing reforms.

The two-day summit, themed “Leveraging Reforms and ESG for Enterprise Competitiveness and Inclusive National Growth,” brought together government officials, employers, labour representatives, diplomats and development partners to examine the impact of the government’s reform agenda on the economy.

Addressing participants, NECA President Ifeanyi Okoye, represented by the association’s Treasurer, Richard Ayibiowu, described the gathering as timely, noting that the country had reached a stage where the effects of recent policy changes should be critically assessed.

He said businesses, employment and investment had all been affected by the adjustment process, with Micro, Small and Medium Enterprises bearing a significant share of the burden.

According to him, the administration has implemented major economic reforms over the past three years to correct structural weaknesses and strengthen the nation’s economic foundations.

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.”

Okoye, however, stressed that the success of any reform programme should ultimately be measured by its effect on businesses and citizens.

He said, “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.”

He added that the summit would provide an avenue for stakeholders to review the reform agenda, exchange ideas and identify practical measures that would strengthen enterprise competitiveness and improve policy implementation.

During the event, Ayibiowu unveiled the Environmental, Social and Governance (ESG) Implementation Guide for MSMEs in Nigeria, developed jointly by NECA and the International Labour Organisation.

He explained that the guide was designed to help smaller businesses meet rising sustainability expectations, improve access to finance and participate more effectively in international value chains.

He said, “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.”

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

He said, “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.”

While acknowledging that the reforms were painful, Oyerinde maintained they were unavoidable and said the private sector would continue engaging government to ensure policies reflected business realities.

He said, “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.”

Oyerinde also announced that the Nigeria Employers’ Summit would become the International Employers’ Summit from 2027, expanding its focus to include global discussions on investment, labour migration, enterprise development and economic transformation.

He said, “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.”

Also speaking, the Director-General of the Nigeria Social Insurance Trust Fund, Oluwaseun Faleye, said workers’ welfare and business growth should be pursued together.

He said, “At the Nigeria Social Insurance Trust Fund, we believe that enterprise competitiveness and workers’ protection are complementary, not competing objectives. A protected workforce is a more confident, productive and resilient workforce, better positioned to contribute to business growth.

“As we pursue economic reforms, we must remain deliberate in ensuring that growth is inclusive and that no segment of our workforce is left behind.”

Faleye added that the Employees’ Compensation Scheme remained an important social protection mechanism that supports workers while providing employers with a more stable operating environment.