NECA: Economic Reforms Fail to Ease Pressure on Nigerian Businesses Amid Rising Costs

Despite ongoing economic reforms in Nigeria, the Nigeria Employers’ Consultative Association (NECA) says many businesses are still struggling under heavy financial pressure, with little relief felt across the private sector.

According to NECA’s Director-General, Adewale-Smatt Oyerinde, companies—especially small and medium-sized enterprises—continue to battle rising inflation, unstable foreign exchange rates, and high energy costs that are eating deep into production and operational budgets.

While acknowledging that reforms such as fuel subsidy removal and foreign exchange market liberalisation have improved investor confidence and transparency, NECA noted that these policy shifts have not yet translated into real relief for most businesses on the ground.

The association highlighted electricity as the biggest obstacle to productivity, alongside multiple taxation, logistics challenges, and weak consumer spending. Many firms, it added, are forced to rely on costly alternative energy sources just to stay afloat.

NECA urged the government to strengthen reforms by stabilising the forex market, improving power supply, and harmonising taxes, while also investing in vocational and digital skills development. The group expressed cautious optimism that with deeper structural reforms, Nigerian businesses could begin to fully benefit from the ongoing economic changes.