Nigerian businesses still struggling three years after reforms, says NECA

Three years after the Federal Government introduced economic reforms, Nigerian businesses continue to grapple with significant challenges, including soaring energy costs, persistent inflation, and unstable exchange rates. The Nigeria Employers’ Consultative Association (NECA) stated on Monday that these reforms have yet to alleviate the burdens faced by firms.

NECA acknowledged that the reforms were essential for repositioning the economy towards sustainable growth. However, the association emphasized the critical need for a comprehensive review of their impact on businesses, employment, and investment. Speaking at the fifth Employers’ Summit in Abuja, NECA President Ifeanyi Okoye, represented by Treasurer Richard Ayibiowu, noted that many enterprises, particularly Micro, Small, and Medium Enterprises (MSMEs), are finding it increasingly difficult to cope with the adjustment period.

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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.

"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," Okoye stated. He recognized the courage required to implement measures such as the removal of fuel subsidies, foreign exchange market reforms, ongoing tax reforms, and initiatives to improve the ease of doing business. These actions, he noted, reflect a deliberate effort to establish a stronger and more sustainable economic foundation.

However, Okoye stressed that the true measure of any reform program lies in its tangible impact on businesses and ordinary Nigerians. "While there have been positive developments in certain macroeconomic indicators, businesses continue to operate in a challenging environment," he said. High energy costs, persistent inflation, exchange rate volatility, multiple taxation, infrastructure deficits, logistics constraints, regulatory complexities, and weakened consumer purchasing power continue to affect business operations and overall economic welfare. The summit aimed to evaluate how these policies have influenced enterprise growth, employment, investment, productivity, and competitiveness.

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While there have been positive developments in certain macroeconomic indicators, businesses continue to operate in a challenging environment.