NECA seeks review of Tinubu’s economic reforms, says businesses still struggle despite macroeconomic gains

The Nigeria Employers’ Consultative Association (NECA) has called for a comprehensive assessment of the Federal Government’s economic reform agenda, saying that while the reforms were necessary and have yielded improvements in some macroeconomic indicators, businesses across the country continue to grapple with severe operational challenges.

 

The association made the call on Monday at the opening of the 5th Nigeria Employers’ Summit in Abuja, where government officials, employers, development partners, organised labour, diplomats, academics and private sector stakeholders gathered to review the impact of the administration’s reform policies on Nigeria’s business environment.

Delivering the welcome address on behalf of Ifeanyi Okoye, NECA President,
Richard Ayibiowu, association’s Treasurer, said the summit was taking place at a critical point in Nigeria’s economic transformation journey.

 

According to him, the Federal Government has, over the past three years, introduced far-reaching reforms aimed at correcting long-standing structural imbalances, improving fiscal sustainability, strengthening public finance management, boosting revenue generation and positioning the economy for long-term competitiveness.

He noted that employers acknowledged the courage required to implement such difficult reforms, including the removal of fuel subsidies, foreign exchange market reforms, tax reforms, initiatives to improve the ease of doing business and efforts to stimulate industrial development.

“We appreciate the courage and commitment required to implement reforms of this scale,” he said.

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However, Okoye stressed that the true success of any reform programme should not be measured solely by its intentions but by its tangible impact on businesses and ordinary Nigerians.

He said three years into the reform process, it had become imperative to evaluate how the policies had affected enterprise growth, employment creation, investment, productivity, competitiveness and overall economic welfare.

While acknowledging improvements in some macroeconomic indicators, he observed that the business environment remained extremely challenging.

According to him, enterprises continue to battle high energy costs, persistent inflation, exchange rate volatility, multiple taxation, poor infrastructure, logistics bottlenecks, regulatory complexities and weakened consumer purchasing power.

He added that Micro, Small and Medium Enterprises (MSMEs), in particular, had borne the greatest burden of the adjustment process.

“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,” he said.

Okoye explained that the summit would provide stakeholders with an opportunity to critically examine the progress made under the reform agenda, identify lingering challenges and propose practical solutions that would strengthen policy implementation and improve Nigeria’s business competitiveness.

He said discussions over the two-day event would also focus on industrial policy, regulatory reforms, sustainability and the implementation of Nigeria’s new tax regime.

A major highlight of this year’s summit, he disclosed, was the launch of the Environmental, Social and Governance (ESG) Implementation Guide for MSMEs in Nigeria, developed through a strategic partnership between NECA and the International Labour Organization (ILO).

He described the guide as timely, noting that environmental, social and governance standards now play an increasingly important role in determining investment decisions, access to finance, market opportunities and participation in global value chains.

According to him, the guide provides a practical framework that will enable Nigerian MSMEs to integrate sustainability into their operations, strengthen resilience, improve productivity and enhance long-term business performance.

He expressed appreciation to the ILO for supporting the initiative and urged participants to actively contribute practical recommendations capable of improving policies, strengthening enterprise sustainability and unlocking Nigeria’s economic potential.

Also speaking Oluwaseun Faleye, Director-General of the Nigeria Social Insurance Trust Fund (NSITF), emphasised that business competitiveness and workers’ welfare should not be viewed as conflicting objectives.

According to him, a protected workforce is more productive, confident and resilient, thereby contributing more effectively to business growth.

“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”, Faleye said.

He added that organisations that prioritise responsible business practices and invest in employee welfare are better positioned to build stronger and more sustainable institutions.

Faleye described the partnership between NSITF and NECA as strategic, saying both organisations share a common objective of promoting sustainable enterprises alongside workers’ protection.

He stressed that as Nigeria continues implementing economic reforms, deliberate efforts must be made to ensure that growth remains inclusive and that no category of workers is excluded.

The NSITF boss said the Employees’ Compensation Scheme remains a critical component of Nigeria’s social protection framework by providing support for workers while giving employers the confidence to operate within a fair and predictable system.

He reaffirmed NSITF’s commitment to deepening collaboration with NECA, particularly in promoting workplace safety through initiatives such as the Fund’s Safe Workplace Campaign.

Faleye also acknowledged the contributions of NECA’s President and Director-General, who serve on the NSITF Board, noting that their expertise had continued to strengthen the Fund’s policies and programmes.

He expressed optimism that the partnership between both organisations would continue to advance the interests of employers, employees and Nigeria’s broader economic development.