Onyebuchi Ezigbo in Abuja
The Nigeria Employers Consultative Association (NECA) has said that many business enterprises, particularly Micro, Small and Medium Enterprises (MSMEs), have been contending with significant challenges of adjusting to federal government economic policies.
It said that though the policy reforms are desirable, it creates challenging environment, such as “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.”
Speaking at the opening of the 5th Nigerian Employers’ Summit 2026 held in Abuja yesterday, the President of NECA, Dr. Ifeanyi Okoye, said that challenges such as high energy costs, persistent inflationary pressures, exchange rate volatility, multiple taxation, infrastructure deficits, logistics constraints, regulatory complexities, and weakened consumer purchasing power have continued to affect business performance across sectors.
Okoye, who was represented by the Treasurer of NECA, Mr. Richard Ayibiowu, said the summit sought to evaluate how the federal government’s economic policies have influenced enterprise growth, employment generation, investment, productivity, competitiveness, and overall economic welfare.
He said: “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.”
In his remarks, Vice President Shettima explained that the reason the federal government took the restoration of macroeconomic stability as its first task was because of its conviction that a stable economy is the first infrastructure for business growth.
He said that the development of infrastructure and logistics constitutes the next pillar in the government’s priority agenda.
Shettima, who was represented by his Special Adviser, Dr. Modibo Umar, said that at the outset of the present administration, the Nigerian economy was carrying deep structural burdens that needed urgent measures to avert total collapse.
According to him, “When His Excellency President Bola Ahmed Tinubu assumed office, the economy carried deep structural burdens. The fuel subsidy had become fiscally unsustainable. The foreign exchange market was fragmented, government revenue was weak, and investor confidence required rebuilding.
“The easy option at that time was to postpone difficult decisions. But leadership is tested when the right decision is also the difficult one.
Shettima said even though the reforms have been difficult, their purpose was to correct the foundations so that growth becomes real, durable, and inclusive.
He said that the government’s foreign exchange reforms are now delivering a more transparent and market-reflective system.
“There is no doubt that restoring macroeconomic stability was our first task because a stable economy is the first infrastructure of business. Before roads, railways, and ports, businesses needed confidence to plan and invest.
“This is why removing the fuel subsidy and reforming the foreign exchange market remain central to our reforms. The subsidy crowded out investment while encouraging inefficiency and rent-seeking. The foreign exchange reforms are delivering a more transparent and market-reflective system,” he said.
Shettima added: “It is necessary because the private sector cannot compete on sentiment. It competes on functional infrastructure, predictable policies, fair taxation, and reliable energy.”
The vice president also said that the fiscal and tax reforms being implemented by the federal government are intended to serve as a foundation for economic growth, not as a burden on businesses.
He said the government’s policies in the power sector, gas development, debt management, the Presidential CNG Initiative, and the broader energy transition were meant to reduce the energy burden on businesses and households.
Shettima stated that, “Businesses do not reject taxation. They reject multiple taxation, harassment, and systems that punish compliance while rewarding informality.
“Our agenda reduces the number of taxes, harmonises administration, protects the vulnerable, supports small businesses and encourages compliance by lowering rates while widening the tax base needed to fund infrastructure.”
He urged all participants at the summit to speak frankly and recommend practical solutions that produce workable ideas and stronger partnerships.
While welcoming participants, the Director-General of NECA, Mr. Smart Oyerinde, said the summit provides a platform for the voice of employers to be heard and to ensure that the government’s policies are informed by practical business reality.
Speaking on the theme of the NECA Summit, ‘Leveraging Reforms and ESG for Enterprise Competitiveness and Inclusive National Growth’, Oyerinde said that NECA’s role is to ensure that the government also understands where businesses are experiencing challenges and what policy adjustments are required to improve enterprise competitiveness.
He said: “Difficult as they may be, they were inevitable if Nigeria is to achieve sustainable economic growth. The organised private sector understands this reality. Our responsibility is to ensure that the government also understands where businesses are experiencing challenges and what policy adjustments are required to improve enterprise”
Oyerinde announced that from 2027, the Nigerian Employers’ Summit will transition into the International Employers’ Summit.
Through our partnerships in more than 50 African countries in affiliation with the International Labour Organisation (ILO), representing over 180 member states, the summit will become a global platform for dialogue on investment, labour migration, enterprise development, and economic transformation.
The high points of the summit included presentations by industry players and senior government officials on the ongoing reforms, as well as an assessment of the implications for businesses.
Also speaking at the summit, the Managing Director/Chief Executive of the Nigeria Social Insurance Trust Fund (NSITF), Oluwaseun Faleye, called for stronger collaboration among the government, employers, and workers to drive sustainable economic growth.
The NSITF boss described the theme of the summit, ‘Leveraging Reforms and ESG for Enterprise Competitiveness and Inclusive National Growth’, as timely as businesses navigate policy reforms in the new economic realities.
