FG, NECA push labour reforms, enterprise growth to bolster economy

…As Ayibiowu elected new NECA president

The Federal Ministry of Labour and Employment and the Nigeria Employers’ Consultative Association (NECA) have reaffirmed their commitment to strengthening labour reforms, promoting industrial peace and creating an enabling environment for businesses amid Nigeria’s sweeping economic reforms and the changing world of work.

They made the commitment, Monday, at the 69th Annual General Meeting (AGM) of NECA in Lagos, where both the Minister of Labour and Employment and the President of NECA agreed that stronger collaboration between government, employers and workers is critical to achieving sustainable economic growth and expanding employment opportunities.

This is as NECA has elected its former treasurer, Richard Ayibiowu, as the new president of the association succeeding Ifeanyi Okoye.

Muhammadu Maigari Dingyadi, Minister of Labour and Employment, speaking at the event, said the success of the Federal Government’s ongoing economic reforms depends largely on a vibrant private sector capable of creating jobs, investing and driving innovation.

“Nigeria is currently undergoing one of the most comprehensive economic reform programmes in its history. The government alone cannot create all jobs. Sustainable employment will continue to come from businesses that invest, innovate, expand production and create opportunities for Nigerians,” Dingyadi said.

He noted that the government’s reform agenda is aimed at restoring macroeconomic stability, stimulating private sector investment, strengthening institutions and building a resilient economy capable of delivering shared prosperity.

According to him, the Ministry has intensified efforts to prevent industrial disputes through dialogue, mediation and consultations, describing industrial peace as a key requirement for economic development.

“Our emphasis has remained on preventing disputes before they escalate into industrial actions capable of disrupting productivity and economic activities,” he said.

The minister also disclosed that the government is modernising Nigeria’s labour administration to respond to the realities of the digital economy and the future of work.

“As part of our commitment to modernise labour administration, the ministry is advancing labour law reforms to ensure Nigeria’s legal framework responds effectively to the challenges of the changing world of work. We are also working with partners to address digital transformation, platform employment, new forms of work organisation and emerging innovations,” he stated.

Ifeanyi Okoye, outgoing President of NECA in his address acknowledged the government’s economic reform efforts but said businesses continue to face severe operating challenges despite improvements in some macroeconomic indicators.

He noted that Nigeria recorded a GDP growth of 3.87 per cent in 2025, up from 3.38 per cent in 2024, driven largely by the non-oil sector, especially telecommunications, financial services, trade and ICT.

However, he said inflation, high borrowing costs, foreign exchange challenges and rising production costs continue to weigh heavily on businesses.

According to him, manufacturers spent about N1.35 trillion on alternative energy, while lending rates remained between 28 and 35 percent, making expansion difficult for many enterprises.

He said the removal of fuel subsidies significantly increased logistics and production costs, with some manufacturers reporting cost increases of more than 40 per cent.

While commending the Federal Government’s reforms aimed at improving transparency in the foreign exchange market, he called for additional measures to preserve business viability and protect jobs.

“NECA affirms the necessity of the Federal Government’s reform agenda while acknowledging the significant pressures it has imposed on businesses. Reforms must preserve business viability, protect jobs and deliver tangible economic benefits,” he said.

Highlighting NECA’s advocacy achievements over the past year, the association said it secured several policy wins, including reductions in regulatory burdens, engagements on pension reforms, improvements in expatriate administration and partnerships with key government agencies to improve the business environment.

Looking ahead, the NECA president expressed optimism that moderating inflation, improved foreign exchange availability and infrastructure investments would support economic recovery.

He also reaffirmed NECA’s commitment to promoting technical and vocational education, decent work, fair labour practices and stronger collaboration with organised labour and government.

On his part, Adewale Adeyanju, deputy president of the Nigeria Labour Congress who represented the president, Joe Ajaero, urged NECA to stand with the congress as negotiations for the new national minimum wage draw closer to ensure the welfare of Nigerian employers.

“The negotiation for a new national minimum wage is fast approaching, and the NECA is prepared to engage. However, it is our expectation that NECA will not be a party that will seek to keep wages at level that only will prove fatal,” he said.